Here's Why Zendesk Shares Are Trading Higher Today

  • Zendesk, Inc ZEN has almost reached a deal with a group of buyout firms, including Hellman & Friedman LLC and Permira, the Wall Street Journal reports.
  • Zendesk, with a market value of ~$7 billion, was likely to strike a settlement agreement with activist investor Jana Partners LLC days after it declined to sell itself in a private-equity auction.
  • Zendesk and Jana had explored a truce involving the exit of CEO Mikkel Svane and changes to the board, including the removal of director Carl Bass.
  • Jana had urged Zendesk to incorporate significant board changes or a sale following the failed bid for SurveyMonkey parent Momentive Global Inc MNTV.
  • Jana claimed that Zendesk's board received the lowest deal-related shareholder support in the last 20 years for its planned acquisition of Momentive.
  • Recently Zendesk had expressed its wish to stay independent after holding talks with potential buyers due to the choppiness in financing markets, making it harder to finance deals.
  • In February, Zendesk had reportedly dumped a ~$17 billion takeover proposal from a group of PE firms, including Hellman, Advent International Corp, and Permira.
  • Zendesk specializes in helping companies with customer communications.
  • Price Action: ZEN shares traded higher by 47.75% at $85.62 in the premarket on the last check Friday.
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