Zendesk to Buy SurveyMonkey Parent Momentive Global

(Bloomberg) -- Customer service software business Zendesk Inc. has agreed to acquire SurveyMonkey parent-company Momentive Global Inc. in a $4.13 billion all-stock deal.

Momentive shareholders will receive 0.225 shares of Zendesk stock, a ratio that represents a value of about $28 per Momentive share, according to a statement Thursday. 

Zendesk fell about 15% while Momentive fell 9% in after-market trading following the announcement. 

The deal is Zendesk’s largest to date, according to data compiled by Bloomberg. 

Momentive’s potential sale had been reported by Bloomberg News earlier this month. 

Zendesk said that it sees value in Momentive’s market research and insights products. The two companies are based nearby, with Momentive in San Mateo, California and Zendesk in San Francisco. Zendesk expects the deal to add to its earnings in the first year. 

Momentive closed at $24.92 apiece Thursday, giving the company a market value of $3.6 billion. Zendesk closed at $119.01 a share, making it worth about $14.2 billion. 

Facebook Inc. chief operating officer Sheryl Sandberg had been serving on the board for Momentive. Her late husband Dave Goldberg was the chief executive officer at SurveyMonkey when he died in 2015.

Allen & Co. and JPMorgan Chase & Co. advised Momentive while Zendesk was advised by Goldman Sachs Group Inc. and Centerview Partners. 

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