Zendesk rejects US$16 billion private equity offer – Finance – Software

Zendesk said on Thursday it had turned down an acquisition offer you from a consortium of private fairness firms for as much as US$16 billion ($A22 billion).

The provide from the non-public fairness corporations, which Zendesk did not determine, was in the range of US$127 to US$132 for every share in funds, the San Francisco-dependent firm reported. Zendesk shares jumped 10.7% on Thursday to close at US$114.18.

Zendesk explained its board concluded that the non-binding proposal, which does not have to have it to abandon the SurveyMonkey offer, noticeably undervalued it.

The buyers, including hedge fund Jana Associates, want the company to abandon its proposed US$3.9 billion all-stock acquisition of SurveyMonkey mum or dad Momentive Worldwide, which it agreed in Oct.

Jana has termed Zendesk’s system to invest in Momentive a “reactive and impulsive selection”.

Zendesk shareholders are scheduled to vote on the Momentive offer on February 25. The Wall Street Journal described on Thursday that Jana was making ready to nominate 4 directors to the company’s board and that Thoma Bravo experienced built a takeover approach to Zendesk.

Thoma Bravo is a single of the personal equity firms that has expressed curiosity in Zendesk but is not aspect of the non-public fairness consortium that created the offer the business turned down, a particular person familiar wirh the make a difference mentioned. Thoma Bravo and Jana declined to comment.