Zendesk keeps pushing for Momentive deal

71
1
Zendesk keeps pushing for Momentive deal

After two activist investors opposed the deal, Reuters-Software firm Zendesk Inc reiterated the benefits of its proposed acquisition of Momentive Global Inc and asked shareholders to vote in its favor.

In a letter to shareholders, Zendesk restated mostly on the synergies that were revealed earlier about the all-stock deal to buy Momentive, the parent of online survey portal SurveyMonkey.

The Zendesk board's decision to acquire Momentive is the result of a thoughtful and deliberative review process that spanned multiple alternatives within adjacent and complementary markets, the company said.

The activist investor Janus Henderson Investors said on Tuesday it did not see a strategic advantage to the software firm's proposed acquisition and advised the company to refocus its focus on its standalone business.

According to Refinitiv data, Janus Henderson holds a 4.94% stake in Zendesk.

Another activist investor, Jana Partners, increased pressure on Zendesk to drop its acquisition plans, arguing that the deal was too expensive. Zendesk said it has increased its conviction in the upside and expected synergies of the deal, which is expected to close in the first half of this year.