Shares of Zendesk Inc (NYSE: ZEN) opened nearly 30% up on Friday after an investor group led by Permira and Hellman & Friedman (H&F) said it will buy the SaaS company for a significant premium.
Zendesk shareholders to get a 35% premium
The group, that also includes GIC and the Abu Dhabi Investment Authority, is willing to pay $77.50 a share for the NYSE-listed firm that translates to about a 35% premium on where the stock closed yesterday.
At the peak of the pandemic, ZEN had traded at a high of $158 a share. The all-cash deal values the California-based company at just over $10 billion and has already secured unanimous approval from its board of directors.
Upon completion of the transaction, Zendesk will become a privately-head company, as per the press release.
Deal to close in the fourth quarter of 2022
Zendesk is yet to get a greenlight from its shareholders, According to Carl Bass (lead independent director), though, the $77.50 a share proposal maximizes value for the shareholders. He added:
The extensive strategic review process included evaluation of both standalone and transactional alternatives and considered a range of factors including current and anticipated market conditions, business momentum, and long-term outlook.
The acquisition is expected to complete in the fourth quarter of 2022, subject to customary closing conditions. Permira and H&F have already arranged financing for the deal. Zendesk had weaker-than-expected earnings in its latest reported quarter.
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