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Zendesk to buy SurveyMonkey’s parent company Momentive


Zendesk jobs and Momentive have agreed to a deal in which the former would buy the latter, including its survey platform SurveyMonkey, in the hopes of allowing Zendesk customers to "create more meaningful interactions." 

Momentive shareholders will receive 0.225 shares of Zendesk stock for each share of Momentive stock, equating to an implied value of $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. 

The purchase is expected to close in the first half of next year, pending regulatory approval. Zendesk stockholders will own around 78 percent of the merged firm once completed, while Momentive owners will own approximately 22 percent. 

According to Zendesk, the move would help the company achieve its revenue target of $3.5 billion in 2024.   

"The SurveyMonkey brand is iconic and we've admired their business from afar since the inception of Zendesk. They truly democratized an industry -- almost everyone in the world has responded to one of their surveys at some point," Zendesk founder and CEO Mikkel Svane said.

"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 jobs. We will deliver a rich, colorful picture of every customer so businesses really understand their customers and can build more authentic relationships." 

Additionally, Momentive CEO Zander Lurie will continue to lead Momentive's management team following the acquisition. "We look forward to combining with Zendesk to advance our mission and accelerate our long-term growth strategy," Lurie said. 

"This is a testament to the strength of our agile products and talented team we are uniquely positioned to make customer intelligence a reality while delivering significant value for our shareholders.

In June of this year, SurveyMonkey was renamed to Momentive. The company said at the time that the rename would better represent its array of experience management services. SurveyMonkey was founded in 1999 with a consumer-oriented survey product focused on the individual user, and its suite of freemium consumer services continues to be an important component of the company's business today. 

However, in recent years, the company has shifted its focus to its business and enterprise solutions in order to climb upscale and build long-term value for the company. According to Momentive president Tom Hale, the SurveyMonkey name eventually grew to limit and failed to reflect the breadth of the company's portfolio. 

"The term SurveyMonkey, we have outgrown it as a company and we have come to realize that we need to tell the world who we are in a different way," said Hale. "What has driven our success is the freemium self-serve survey business, but the last few years has seen us tilting upmarket."  

On Thursday, Zendesk also reported its third-quarter results, with revenue reaching $347 million, following a 32% year-over-year increase and GAAP net loss just shy of $39 million. 

Source: ZDNet 

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