Zendesk and Momentive have entered into a definitive agreement under which Zendesk will acquire Momentive, including its SurveyMonkey platform.
Zendesk states it expects the combination to be growth accretive in its first full operating year, and accelerate Zendesk's revenue plan to $3.5 billion in 2024, one year ahead of its previous target.
The companies' respective customer bases and complementary capabilities are expected to provide opportunity for joint product adoption and increasing Momentive's enterprise traction, according to a statement from Zendesk.
The company will reinvest savings from scale efficiencies into growth opportunities to support the combination.
Upon the close of the transaction, Momentive CEO Zander Lurie will continue to lead Momentive's management team.
Looking to functionality, with Momentive, Zendesk states it will create a customer intelligence company that connects what customers say and do, with how they think and feel.
The combination will give businesses the ability to:
- Listen to your customers: Collect critical information about customer needs, experiences and expectations
- Develop a picture: Bring a customer into focus by combining transactional data with market research and insights for the context to truly understand them
- Act on insights: Empower teams to take action with the full breadth of data about their customers as well as feedback and market insights to improve customer interactions
Zendesk CEO and founder Mikkel Svane says, "The SurveyMonkey brand is iconic and we've admired their business from afar since the inception of Zendesk. They truly democratised an industry - almost everyone in the world has responded to one of their surveys at some point.
"We're very excited to have them join the Zendesk mission along with Momentive's market research and insights products and together create a powerful new Customer Intelligence company.
"We will deliver a rich, colourful picture of every customer so businesses really understand their customers and can build more authentic relationships.
Momentive CEO Zander Lurie says, "We look forward to combining with Zendesk to advance our mission and accelerate our long-term growth strategy.
"This is a testament to the strength of our agile products and talented team. Zendesk and Momentive share a culture centred around our people, our communities and the customers we serve.
"The synergies between our companies are proximate and compelling. We are uniquely positioned to make Customer Intelligence a reality while delivering significant value for our shareholders.
Following a comprehensive review, the boards of directors of Zendesk and Momentive approved the transaction. The terms of the transaction provide for Momentive stockholders to receive 0.225 shares of Zendesk stock for each share of Momentive stock.
This ratio represents an implied value of approximately $28 per outstanding share of Momentive stock based on the 15-day volume weighted average price of Zendesk common stock up to and including October 26, 2021.
Upon closing of the transaction, Zendesk stockholders will own approximately 78% of the combined company and Momentive stockholders will own approximately 22% of the combined company.
The transaction, which is anticipated to close in the first half of 2022, is subject to approval by Zendesk stockholders and Momentive stockholders, the receipt of required regulatory approvals and other customary closing conditions.
