Zendesk is acquiring Momentive, thereby gaining control of survey platform SurveyMonkey. With the acquisition, Zendesk wants to provide better information services about customers.
The acquisition concerns a majority stake of 78 percent of Momentive shares. Zendesk is giving Momentive shareholders 0.225 Zendesk shares per share, representing approximately 24 euros ($28) per share. The remaining Momentive shares will remain in the hands of current shareholders.
Better relationships with customers
By acquiring a majority stake, CRM specialist Zendesk will gain control of the popular survey platform SurveyMonkey. This platform, which was rebranded to Momentive earlier this year, can be used by anyone to conduct online surveys for free. Momentive made money through various freemium options.
Momentive’s technology will soon be used to develop intelligent customer information solutions. Zendesk wants to enable its (business) customers to build relationships with their customers more effectively.
Opportunity for Momentive
Momentive stands to gain from the acquisition. Although SurveyMonkey brought the company significant revenue, Momentive stated desires to furtherly focus on the business market. The brand awareness of the platform, and especially its association with consumers, worked against the transformation. By now operating under the Zendesk banner, which is better known in the business market, the segment should be more available.
Additionally, the acquisition is of long-term importance for Zendesk. The CRM specialist expects sales to increase to 3 billion euros ($3.5 billion) by 2024. The acquisition of Momentive should be completed in the first half of 2022, depending on the approval proces of various regulators.
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