HomeFinancial MarketsZendesk Stock Surges Close to 30 Percent After Takeover News

Zendesk Stock Surges Close to 30 Percent After Takeover News

Zendesk, a company that deals in software-as-a-service products, saw its stock (ZEN) take a jump of around 30 percent on Friday. The reason for this surge is recent news that the investor group is close to sealing a $10.2 billion takeover of the company.

ZEN closed at $57.65 per share on Thursday before opening at $75.32 on Friday. It spent the rest of the day in the $73.50 – $75.50 range, indicating that the investors feel good about the proposed move.

The offer made by private equity investors, fronted by Hellman & Friedman and Permira, is expected to pay $77.50 per Zendesk share. The move, which was unanimously approved by Zendesk’s board, will take the company into the private landscape by the end of 2022.

The sale of Zendesk comes several months after the company refused a much bigger offer. In February, a group of investors approached with a bid of around $17 billion. The bid was swiftly rejected with the explanation that it “undervalues the company.” The company also passed on the opportunity to buy software company Momentive Global Inc. (former SurveyMonkey).

Fast forward to June, the company was scrambling to deal with a challenging market and pressure from activist investors like Jana Partners. The sale, even at a discount, ended up becoming the only remaining option to ease the concerns of investors.

Brazil’s October Job Creation Falls Short of Expectations

Brazil's Labor Ministry released its formal net jobs creation data on Tuesday, showing a net gain of 159,454 jobs for the month of October....

Apple to Lose Millions of iPhones Due to Factory Turmoil

Apple Inc. is set to incur a production shortfall of up to six million iPhones following Covid-related turmoil at the company's key manufacturing hub...

Saudi Aramco Begins Exploring $1 Billion IPO

Saudi Aramco Base Oil Co., the refining unit of the state-owned Saudi oil company, has begun planning for its initial public offering (IPO) on...