2 min

Zendesk announced that its shareholders approved a $10.2 billion acquisition by the private investors Permira and Hellman & Friedman.

Zendesk develops CRM software for more than 200.000 customers. The company strives to create growth and innovation through flexible and custom solutions.

In June, the company agreed to an acquisition deal that would provide its shareholders with $77.5 per share in cash, almost 33 percent more than the stocks’ closing rate. The deal was accepted under pressure from Jana Partners, an activist investor.

In the same month, Zendesk confirmed the company’s acquisition by the enterprises managed by Permira and Hellman & Friedman in a $10.2 billion deal. Zendesk said that the deal would be closed by the end of the fourth quarter of 2022.

The news came out just weeks after Zendesk decided to remain public. The deal is much lower than previous offers, which were valued at $16 billion.

The risks of Zendesk’s acquisition

Proxy firm ISS (Institutional Shareholder Services) backed the deal, but warned that there would be a “significant downside risk” if the company’s stakeholders failed to approve the agreement. Moreover, it issued suggestions and recommendations days before stakeholders were set to vote.

Besides, Light Street Capital Management — a fund manager that owns more than 2 percent of Zendesk — has clearly shown disagreement with the deal. It highlighted that it would vote against the $10.2 billion acquisition and suggested that Zendesk should stay public and find a new CEO.

Zendesk stated that the business’ momentum and macroeconomic situation have been constantly weakening since the company announced the private deal.