Zendesk (ZEN) Agrees to Be Bought by P/E Group, But Deal Falls Flat
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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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Create E-mail Alert Related CategoriesHot List, Hot M&A, Mergers and Acquisitions, Private Equity, Rumors
Related EntitiesGoldman Sachs, JANA Partners LLC, Barry Rosenstein, Morgan Stanley, Hellman & Friedman LLC, Permira, Pre Market Movers
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