Zendesk working with Qatalyst on its potential sale – source

Industry:    2022-04-19

Software company Zendesk Inc has hired advisory firm Qatalyst Partners to explore a potential sale, a source familiar with the matter told Reuters on Monday.

Zendesk declined to comment and Qatalyst did not immediately respond to a Reuters request for comment on the development first reported by Bloomberg News earlier in the day.

In February, Zendesk said it had rejected an acquisition offer from a consortium of private equity firms for as much $16 billion.

Zendesk’s investors rejected a proposed takeover of SurveyMonkey parent Momentive Global in February, terminating the merger agreement.

The deal, valued at roughly $4 billion, had been roundly criticized by prominent investors including state pension funds and large mutual funds, which questioned its rationale and said it would likely be too risky.

The company is also under pressure from activist investment firm Jana Partners, which launched a proxy fight at Zendesk and nominated four director candidates. New York-based Jana argued that the company needs to be rehabilitated after its unpopular attempt to buy Momentive Global.

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