Zendesk rejects takeover offer
- Dan Primack, author of Axios Pro Rata
Illustration: Gabriella Turrisi/Axios
Zendesk said it rejected an unsolicited $16 billion takeover offer from a private equity consortium, which the WSJ reports included Hellman & Friedman, Permira and Advent International.
Why it matters: This comes against the backdrop of Zendesk's continuing efforts to buy SurveyMonkey parent Momentive (Nasdaq: MNTV) over the objection of shareholders like Jana Partners, which is expected to launch a proxy fight. Shareholders of both companies are scheduled to vote on the merger two weeks from today.
Details: Zendesk, a customer engagement SaaS company, opened trading yesterday at $101.42 per share, while the PE approach was for $127–$132 per share. The WSJ also reports that Thoma Bravo is considering a bid.
The bottom line: "PE firms have shown a seemingly endless appetite for software companies and a willingness to partner for buyouts." — Bloomberg