A deal struck Friday for software provider Zendesk to be acquired by an investor consortium led by Permira and Hellman & Friedman is the latest transaction in a rising wave of tech takeovers as investors seek to take advantage of falling valuations in the sector.
The transaction values Zendesk at $77.50 per share, about $10.2 billion, representing roughly a 34% premium to the stock’s closing price Thursday, according to a statement from the company. However, it is well below a $17 billion private equity bid that the company rejected in February, which, according to reports, valued the company at $127 to $132 per share.
Zendesk’s shares rose about 29% to more than $74 Friday.
A number of outsized take-privates targeting technology companies have been announced this year—including the planned $44 billion offer to acquire Twitter by Elon Musk. In January, Vista Equity Partners and Elliott Management’s PE arm announced a plan to acquire cloud-computing company Citrix Systems in a roughly $16.5 billion all-cash transaction.
Covetrus, a provider of technology and services for veterinarians, is also in talks with TPG and Clayton, Dubilier & Rice for a sale, which values the company at $21 per share, according to regulatory filings.
Zendesk has been at the center of a series of investor dramas this year. New York-based activist investor Jana Partners, which owned a roughly 2.5% stake in Zendesk, has been pushing for a management shake-up at the company after its acquisition of Momentive Global, SurveyMonkey’s parent, fell through.
Featured image by Fraser Hall/Getty Images
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