Zendesk shareholders vote for a $10.2 billion private deal

Zendesk shareholders vote for a .2 billion private deal

(Reuters) – The company said on Monday that Zendesk NYSE Inc shareholders have approved a planned $10.2 billion deal to buy the software company by a consortium of private equity firms led by Hellman & Friedman and Permira.

The company agreed in June to go private in a deal that would see investors receive $77.50 per share in cash after continued pressure from activist investor Jana Partners.

The company said the deal will close in the last quarter of the year.

The agency’s Institutional Shareholder Services (ISS) backed the deal and warned that there would be a “significant downside risk” if Zendesk shareholders failed to approve it.

Light Street Capital Management, which manages funds that own more than 2% of Zendesk, said in August it would vote against the deal and suggested it remain a public stand-alone company and find a new head.

Earlier this month, Zendesk said that macroeconomic conditions and business momentum have continued to weaken since the special deal was announced in late June by the consortium.

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