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Zendesk sticks to Momentive takeover plan as activist investors protest

Jan 13 (Reuters) – Software agency Zendesk Inc (ZEN.N) on Thursday reiterated the advantages of its proposed acquisition of Momentive Global Inc (MNTV.O) and requested shareholders to vote in its favor, proper after two activist investors opposed the deal.

In a letter to shareholders, Zendesk restated largely solely synergies that have been disclosed earlier in regards to the all-stock deal to purchase Momentive, the guardian of on-line 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 corporate stated.

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However, activist investor Janus Henderson Investors stated on Tuesday it didn’t see a strategic benefit to the software program agency’s proposed acquisition and suggested the corporate to renew its give attention to executing on its standalone enterprise. learn extra

Janus Henderson holds a 4.94% stake in Zendesk, in accordance to Refinitiv knowledge.

Meanwhile, one other activist investor, Jana Partners, elevated stress on Zendesk to drop its acquisition plans, arguing that the deal was too costly. At the time the deal was introduced, in October, it was valued at almost $4 billion. learn extra

Zendesk stated it has “increased conviction in the upside and the expected synergies” of the deal which is anticipated to shut within the first half of this 12 months.

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Reporting by Chavi Mehta in Bengaluru; Editing by Devika Syamnath

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