Software services company Zendesk Inc said on Thursday it will buy Momentive Global Inc, owner of the popular SurveyMonkey platform, in an all-stock deal for about $4 billion.
Momentive shareholders will receive 0.225 shares of Zendesk stock for each share of Momentive stock they own, which was valued at approximately $28 per share at the time of the announcement.
Zendesk stock fell 16% in aftermarket trading, while Momentive also fell nearly 9% to $22.70 per share.
Momentive, which was renamed Survey Monkey, went public in September 2018 for $12 per share. The San Mateo, California-based company turned itself into Momentive earlier this year in an effort to expand into its portfolio of experience management services.
Zendesk, a customer service software vendor, has faced tailwinds during the pandemic as its enterprise customers accelerate digital transformation.
This will be the biggest acquisition of the company.
“We have a huge overlap in customers. It’s incredibly powerful. And we believe it will create a whole new, richer picture of your customers,” ZenDesk Chief Executive Mikel Sven told investors Thursday.
The deal is expected to close in the first half of 2022, pending approval from Zendesk and Momentive shareholders.
The sharp drop in stock prices preceded all stock deals, such as the $14.7 billion purchase of software firm Five9 Inc. by Zoom Video Communications Inc.
Zendesk also reported its quarterly revenue on Thursday, which rose 32% to $347 million.
It expects the deal with Momentiv to increase its revenue plan to $3.5 billion in 2024, a year ahead of its previous target.
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