Zendesk sticks to Momentive takeover plan as activist investors protest

Momentive Global

13/01/2022 23:09

Jan 13 (Reuters) - Software firm Zendesk Inc  ZEN.N  on
Thursday reiterated the benefits of its proposed acquisition of
Momentive Global Inc  MNTV.O  and asked shareholders to vote in
its favor, right after two activist investors opposed the deal.
    In a letter to shareholders http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20220113:nBwc4W87ka&default-theme=true,
 Zendesk restated mostly only synergies that were disclosed
earlier about the all-stock deal to buy Momentive, the parent of
online survey portal SurveyMonkey. 
    "The Zendesk board's determination to acquire Momentive is
the result of a thoughtful and deliberative review process
spanning multiple alternatives within adjacent and complementary
markets," the company said.
    However, 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 renew its
focus on executing on its standalone business.  urn:newsml:reuters.com:*:nL4N2TR3OY
    Janus Henderson holds a 4.94% stake in Zendesk, according to
Refinitiv data. 
    Meanwhile, another activist investor, Jana Partners,
increased pressure on Zendesk to drop its acquisition plans,
arguing that the deal was too expensive. At the time the deal
was announced, in October, it was valued at nearly $4 billion.
 urn:newsml:reuters.com:*:nL1N2TJ133    
    Zendesk said it has "increased conviction in the upside and
the expected synergies" of the deal which is expected to close
in the first half of this year. 
    

 (Reporting by Chavi Mehta in Bengaluru; Editing by Devika
Syamnath)
 ((Chavi.Mehta@thomsonreuters.com;))