Permira, H&F to buy Zendesk in $10.2bn deal

Zendesk said on Friday that it has agreed to be bought by an investor group led by private equity firms Permira and Hellman & Friedman in a $10.2bn all-cash deal, sending shares in the San Francisco-based software maker surging.

Under the terms of the agreement, Zendesk shareholders will receive $77.50 per share, which is a premium of around 34% to the closing share price on Thursday.

Zendesk founder, chairman and chief executive Mikkel Svane said: "This is the start of a new chapter for Zendesk with partners that are aligned with the strength of our agile products and talented team, and are committed to providing the resources and expertise to continue our growth trajectory.

"With Hellman & Friedman and Permira’s support, we’ll continue to execute on our long-term strategy with our customers as our top priority, taking full advantage of the opportunity we see to help businesses navigate the ever changing expectations and demands of their customers."

The deal is expected to close in the fourth quarter. In addition to Hellman & Friedman and Permira, the investor group includes a wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA), and Singaporean sovereign wealth fund GIC.

At 1350 BST, Zendesk shares were up 30% in pre-market trade at $75.09.