Zendesk (ZEN) shares soared higher Friday after the customer service software group agreed to a $10.2 billion takeover from private equity investors.
An investor group lead by Hellman & Friedman and Permira said they will pay $77.50 per share for the San Francisco-based group, a 34% to yesterday's closing price on the New York Stock Exchange. The company went public in 2014 at a price of $9 per share.
Zendesk will be taken private once the deal is closed, the company said, which both parties expect will happen by the fourth quarter of this year.
“This is the start of a new chapter for Zendesk with partners that are aligned with the strength of our agile products and talented team, and are committed to providing the resources and expertise to continue our growth trajectory,” said CEO Mikkel Svane. “With Hellman & Friedman and Permira’s support, we’ll continue to execute on our long-term strategy with our customers as our top priority, taking full advantage of the opportunity we see to help businesses navigate the ever changing expectations and demands of their customers.”
Zendesk shares were marked 28.65% higher in early afternoon trading Friday to change hands at $74.57 each.
Zendesk said it would conduct a strategic review of its business earlier this month in the face of activist pressure from Jana Partners, who had threatened to sue the group for failing to set a date for its annual general meeting, following a failed attempt to buy AI specialists Momentive Global (MNTV) in February.
