Zendesk is acquiring Momentive and its SurveyMonkey platform, with the move expected to be growth accretive in its first full operating year and accelerate Zendesk's revenue plan to US$3.5 billion in 2024, one year ahead of its previous target. According to Zendesk, the companies' respective sizable customer bases and complementary capabilities are expected to provide significant opportunities for joint product adoption and increase Momentive’s enterprise traction.
The terms of the transaction provide for Momentive stockholders to receive 0.225 shares of Zendesk stock for each share of Momentive stock, a ratio which represents an implied value of approximately US$28 per outstanding share of Momentive stock based on the 15-day volume weighted average price of Zendesk common stock up to and including 26 October.
Zendesk said it will reinvest savings from scale efficiencies into "compelling growth opportunities" to support the acquisition. Upon the close of the transaction, Momentive CEO Zander Lurie will continue to lead Momentive’s strong management team. With Momentive, Zendesk said it is able to create what businesses really need - a customer intelligence company that connects what customers say and do, with how they think and feel.
Zendesk's CEO and founder, Mikkel Svane, said the SurveyMonkey brand is iconic and the company has truly democratised an industry. "“We are very excited to have them join the Zendesk mission along with Momentive’s market research and insights products and together create a powerful new customer intelligence company," he added.
Meanwhile, Lurie said the acquisition is a testament to the strength of its agile products and talented team. "Zendesk and Momentive share a culture centred around our people, our communities and the customers we serve. The synergies between our companies are proximate and compelling. We are uniquely positioned to make customer intelligence a reality while delivering significant value for our shareholders," he added.
The acquisition comes alongside Zendesk's latest financial results for the third quarter ended 30 September 2020. Its revenue grew 32% of the period year period to US$347.0 million and the company now expects to report revenue in the range of US$366 to US$372 million for the quarter ending 31 December this year. The company also recently brought on board Carolyn Camoens as its APAC director of communications. In her new role, Camoens reports to Stephanie Barnes, VP, communications at Zendesk.
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