Zendesk Agrees To Acquire Momentive Global At 14% Premium

Software services provider Zendesk Inc (NYSE:ZEN) agreed to acquire SurveyMonkey platform owner Momentive Global Inc (NASDAQ:MNTV) for nearly $4 billion in an all-stock deal.
Momentive shareholders will receive 0.225 shares of Zendesk's per share of Momentive stock, implying a value of about $28 per share. The purchase price means a 14% premium on Momentive Global's October 27 closing price of $24.56.
The deal will likely close in the first half of 2022.
Zendesk reported its third-quarter FY21 revenue on October 28, which grew 32% year-on-year to $347 million.
Zendesk sees the deal to drive its revenue plan to $3.5 billion in 2024, one year ahead of its previous target.
Zendesk held $953.8 million in cash and equivalents as of September 30.
Price Action: ZEN shares traded lower by 18.9% at $96.47 in premarket on the last check Friday.