Zendesk Confirms Takeover Deal At 34% Premium; Share Prices Soar Premarket

  • Global investment firms Permira and Hellman & Friedman LLC agreed to takeover Zendesk, Inc ZEN in an all-cash transaction that values Zendesk at $10.2 billion.
  • The purchase price of $77.50 per share implies a premium of 34% over Zendesk's closing stock price of $57.95 on June 23.
  • The investor group includes a subsidiary of the Abu Dhabi Investment Authority (ADIA) and GIC. 
  • Earlier in the day, the Wall Street Journal reported that Zendesk was close to reaching a deal with the firms.
  • Zendesk, with a market value of ~$7 billion, was likely to reach an agreement with activist investor Jana Partners LLC days after declining to sell itself in a private-equity auction.
  • Zendesk specializes in helping companies with customer communications.
  • Price Action: ZEN shares traded higher by 31% at $76 in the premarket on the last check Friday.

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