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Zendesk Inc - Stock Quote ZEN

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Morningstar's Zendesk Inc Stock Analysis

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Zendesk Agrees To Be Taken Private for $77.50 Per Share, Well Below Our Standalone FVE

Dan Romanoff, CPA Senior Equity Analyst

Analyst Note

| Dan Romanoff, CPA |

Zendesk has agreed to be taken private by Permira and Hellman & Friedman for $77.50 per share in cash, representing a premium of approximately 35% to June 23's closing price. On June 9, Zendesk completed its strategic review process, concluding that after considering a sale of the company, it was in the best interest of shareholders to continue to execute on its strategy. The deal is expected to close in the fourth quarter of this year. We see no material hurdles to the closing of this transaction within the specified time frame, and we are moving our fair value estimate to the $77.50 deal price. After lowering our growth outlook for many of our companies based on a return to normal as the pandemic recedes and other macro factors, we are applying that same framework to Zendesk and lowering our standalone fair value estimate to $115 per share, from $146 previously, in the highly unlikely event this transaction fails to close. While we think shares are undervalued, we have no reason to believe a better offer will emerge.

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Zendesk Inc's Company Profile

Business Description

Founded in 2007, Zendesk provides a portfolio of customer engagement software solutions via single applications or the Sunshine suite. Its software unifies customer communication and data across various channels and business units, and simplifies customer service and engagement across self service, phone, chat, messaging, and email.

Contact
989 Market Street
San Francisco, CA, 94103
T +1 415 418-7506
Sector Technology
Industry Software - Application
Most Recent Earnings Mar 31, 2022
Fiscal Year End Dec 31, 2022
Stock Type Speculative Growth
Employees 6,300