Zendesk terminates SurveyMonkey acquisition

Zendesk announced on Friday that its investors didn’t approve the proposed takeover of SurveyMonkey parent Momentive Global and that it terminated the merger deal. 

“While we were excited by the potential of this transaction to transform the customer experience and create stockholder value, we respect and appreciate the perspectives of our stockholders,” Zendesk founder and Chief Executive Officer Mikkel Svane said in a statement.

Zendesk had first announced its intent to pursue an acquisition of Momentive last October. The company had predicted $4.6 billion in combined revenue for the companies by 2025.

“Our Board and management team remain laser-focused on our strategy and execution. Zendesk’s business has never been stronger, with accelerated revenue growth of 30% to $1.34 billion in revenue in 2021 and a clear path to generating $3.4 billion in revenue by 2025.” Svane added.

Zendesk’s percentage of its overall book of business represented by customer accounts with more than $250,000 in annual recurring revenue grew to 38 percent in 2021. Product-led growth reflected accelerating adoption of the Zendesk Suite, which launched in early 2021 and exceeded $500 million in annual recurring revenue.