Zendesk announces plans to get Momentive, which possesses SurveyMonkey, in an all-stock deal worth almost $4B; Zendesk share falls 16% after normal office hours (Reuters)

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(Reuters) -Software services corporation Zendesk Inc mentioned on Thursday it might buy Momentive Worldwide Inc, owner from the popular SurveyMonkey system for nearly $4 billion dollars in an all-stock offer.

Momentive investors will receive zero. 225 shares associated with Zendesk’s stock for every share of Momentive stock they very own, which implied the value of about $28 per share during the time of the announcement.

Zendesk’s stock dropped 16% in aftermarket replacement trading, while Momentive also dropped almost 9% to $22. 70 per talk about.

Momentive, after that named Survey Goof, went public within September 2018 from $12 per reveal. The San Mateo, California-based company rebranded itself to Momentive in an effort to expand to some portfolio of encounter management services recording.

Zendesk, a client service software supplier, has faced tailwinds during the pandemic as the enterprise customers speed up digital transformation.

This will be the company’s biggest acquisition.

“We have a huge overlap in clients. It’s incredibly effective. And we believe that it is going to create a whole new, more potent picture of your clients, ” Mikkel Svane, chief executive at Zendesk told investors upon Thursday.

The offer is expected to near in the first 1 / 2 of 2022, pending home loan approvals from Zendesk plus Momentive shareholders.

A sharp downturn within stock prices provides previously resulted in the particular collapse of all-stock deals such as Focus Video Communications Inc’s $14. 7 billion dollars purchase of software company Five9 Inc.

Zendesk also documented its quarterly income on Thursday, which usually grew 32% in order to $347 million.

It expects the offer with Momentive in order to accelerate its income plan to $3. five billion in 2024, one year ahead of the previous target.

Reporting simply by Krystal Hu within New York and Noor Zainab Hussain within Bengaluru; Editing simply by Arun Koyyur plus Chris Reese

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