Zendesk to acquire SurveyMonkey parent Momentive

Image Credit: Bloomberg

Customer service software vendor Zendesk has announced that it’s entered into an agreement to acquire Momentive, including its SurveyMonkey platform. This will be Zendesk’s biggest acquisition. 

Momentive shareholders will receive 0.225 shares of Zendesk’s stock for each share of Momentive stock , a ratio that represents a value of about $28 per Momentive share, according to the statement

Zendesk expects the combination to be growth accretive in its first full operating year and accelerate Zendesk’s revenue plan to $3.5 billion in 2024, one year ahead of its previous target. For the third quarter of 2021, the company reported a revenue growth of 32% year-over-year to $347 million. 

“The SurveyMonkey brand is iconic and we’ve admired their business from afar since the inception of Zendesk. They truly democratized an industry—almost everyone in the world has responded to one of their surveys at some point,” said Mikkel Svane, CEO & Founder, Zendesk. 

“We’re very excited to have them join the Zendesk mission along with Momentive’s market research and insights products and together create a powerful new Customer Intelligence company. We will deliver a rich, colorful picture of every customer so businesses really understand their customers and can build more authentic relationships.”

Momentive provides cloud-based products for brands, including GetFeedback and SurveyMonkey, to fuel market insights, brand insights, employee experience, customer experience, and product experience. The company says decision makers at 345,000 organizations worldwide use its solutions. 

Spectrum Equity and Bain Capital, founded by Ryan Finley and Chris Finley, acquired a majority stake in Momentive (formerly SurveyMonkey) in 2009. In September 2018, the San Mateo, California-based company went public at $12 per share. 

Upon the close of the transaction, which is expected in the first half of 2022 and pending approvals from the two companies’ shareholders,  Momentive CEO Zander Lurie will continue to lead Momentive’s management team.

“We look forward to combining with Zendesk to advance our mission and accelerate our long-term growth strategy,” said Zander Lurie. “This is a testament to the strength of our agile products and talented team. Zendesk and Momentive share a culture centered around our people, our communities and the customers we serve. The synergies between our companies are proximate and compelling. We are uniquely positioned to make Customer Intelligence a reality ​​while delivering significant value for our shareholders.”

Written by Sophie Blake

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