Zendesk’s proposed acquisition of Momentive will not go through. Zendesk’s stakeholders decided against the plan.
At the end of last year, Zendesk announced that it wanted to acquire software developer Momentive, which made its mark with SurveyMonkey.
Zendesk proposed the acquisition of a majority stake of 78 percent. To obtain the majority stake, Zendesk planned to trade 0.225 Zendesk shares for each share held by Momentive’s stakeholders, representing a value of approximately 24 euros per share.
Zendesk’s shareholders did not accept the exchange of shares. The exact reasons are unknown. In a comment, CEO Mikkel Svane indicates that, despite the failed acquisition, Zendesk remains focused on further growth.
Firstly, Zendesk is increasing its focus on large business customers. They provide the most revenue. In addition, the Zendesk Suite solution will be further expanded. Upcoming functionality includes messaging, customizable workflow and platform components, administrative capabilities and CX analytics. Lastly, Zendesk plans to increase customer interaction in hopes of developing customized solutions.