Shares of Zendesk Inc. ZEN,
soared 29.5% in premarket trading Friday, after the customer experience platform company confirmed a deal to be acquired by an investor group that includes Permira and Hellman & Friedman in an all-cash deal valued at about $10.2 billion. Under terms of the deal, the Permira and H&F will share $77.50 for each Zendesk share outstanding, which represents a 33.7% premium to Thursday’s closing price of $57.95. The Wall Street Journal had reported late Thursday that a deal with a group including Hellman & Friedman and Permira could be announced in the coming days. “This transaction provides certainty of value for our shareholders at a significant premium to Zendesk’s trading price,” said Carl Bass, the lead independent director on Zendesk’s board. The extensive strategic review process included the evaluation of both standalone and transactional alternatives and considered a range of factors including current and anticipated market conditions, business momentum and long-term outlook.” The investor group buy Zendesk also includes the Abu Dhabi Investment Authority and GIC Zendesk’s stock has tumbled 44.4% year to date through Thursday, while the S&P 500 SPX,
has lost 20.4%.