Zendesk onboarded advisors from Qatalyst Partners to explore a potential sale. This is reported by Bloomberg based on insider sources.
Zendesk might go private. Though Zendesk and Qatalyst Partners refused to comment, Bloomberg sources indicate that potential buyers were found and contacted. Interested parties are said to include software companies and private equity firms. Qatalyst Partners, which was onboarded as a financial advisor, may also suggest that Zendesk remains independent.
Failed acquisition of Momentive
Zendesk has been under pressure lately. In February, the company failed to acquire research software provider Momentive. The shareholders of Zendesk disagreed with the acquisition, which was viewed as risky.
In the same month, Zendesk is said to have rejected a 16 billion dollar bid (almost 15 billion euros) from a consortium of several unnamed private investment companies.
Pressure from activist shareholder
Zendesk is also under pressure from activist investor JANA Partners. The shareholder believes that the Zendesk management doesn’t know what’s going on outside the company. JANA Partners finds shareholder support to be at an all-time low. Therefore, the shareholder would like to see management changes. JANA Partners introduced four potential candidates.