Software firm Zendesk Inc on Thursday reiterated the benefits of its proposed acquisition of Momentive Global Inc and asked shareholders to vote in its favor after two active investors opposed the deal.
In a letter to shareholders, Zendesk restated most of the synergies it previously reported about an all-stock deal to buy Momentive, the parent of online survey portal SurveyMonkey.
“The Zendesk Board’s determination to acquire Momentiv is the result of a thoughtful and thoughtful review process, which spans multiple options within adjacent and complementary markets,” the company said.
However, active investor Janus Henderson Investors said on Tuesday that it did not see a strategic advantage for the software firm’s proposed acquisition and advised the company to shift its focus to its standalone business.
According to Refinitiv data, Janus Henderson holds a 4.94% stake in Zendesk.
Meanwhile, another active investor, Jana Partners, increased pressure on Zendesk to abandon its acquisition plans, arguing that the deal was too expensive. At the time the deal was announced, it was valued at around $4 billion in October.
Zendesk said there is “increased confidence in the upside and expected synergy” of the deal, which is expected to close in the first half of this year.
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