Zendesk (ZEN) Agrees to Be Bought by P/E Group, But Deal Falls Flat

Confirming rumors overnight, Zendesk, Inc. (NYSE: ZEN) agreed to be acquired by private equity firms Permira and Hellman & Friedman LLC for $10.2 billion in cash, or $77.50 per share.

The offer price was less than speculators had been betting on earlier today, with shares climbing to over $85 per share in pre-open trading.

News overnight of the potential deal took investors by surprise since it was only a few weeks since the company announced it was ending its review of strategic alternatives without a deal.

Zendeks had been the target of activist investors, including JANA Partners, which was pushing for a board refresh absent a sale.

The deal is expected to close in the fourth quarter of 2022 and is subject to customary closing conditions, including Zendesk stockholder approval.

Qatalyst Partners and Goldman Sachs & Co. LLC are serving as financial advisors to Zendesk and Morgan Stanley & Co. LLC is serving as financial advisor to the investor group.

By StreetInsider.com Staff

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