Zendesk Amps up on Customer Intelligence Market with Latest Acquisition
Zendesk has announced it is acquiring Momentive, including its iconic SurveyMonkey platform. This acquisition would enable Zendesk, a renowned, beloved customer service, and customer feedback brand, to create a powerful new Customer Intelligence company,allowing its B2B customers to build more meaningful relationships. The announcement comes at the back of its third-quarter results which stated quarterly revenue increased 32% year over year to $347.0 million. Backed by a solid quarterly result, the Zendesk-Momentive combination is expected to be growth accretive by 2023 and accelerate the company’s revenue plan to $3.5 billion in 2024.
Momentive was recently rebranded from its iconic name SurveyMonkey.
Zendesk will reinvest savings from scale efficiencies into compelling growth opportunities to support the combination. Upon the close of the transaction, Momentive CEO Zander Lurie will continue to lead Momentive’s strong management team.
What Zendesk Plans to Do with Momentive Aboard
Zendesk expects the combination to be growth accretive in its first full operating year and accelerate Zendesk’s revenue plan to $3.5 billion in 2024, one year ahead of its previous target. The companies’ respective sizable customer bases and complementary capabilities are expected to provide significant opportunities for joint product adoption and increase Momentive’s enterprise traction.
What Momentive Offers
Momentive is a very popular name in the enterprise technology stack marketplace. It offers cutting-edge solutions for
- Enterprise feedback management
- Brand tracking and analytics
- Concept testing
- CX, Employee experience (EX), and Brand experience management
- TLD, and so on.
“The SurveyMonkey brand is iconic and we’ve admired their business from afar since the inception of Zendesk. They truly democratized an industry—almost everyone in the world has responded to one of their surveys at some point,” said Mikkel Svane, CEO & Founder, Zendesk.
Mikkel added, “We’re very excited to have them join the Zendesk mission along with Momentive’s market research and insights products and together create a powerful new Customer Intelligence company. We will deliver a rich, colorful picture of every customer so businesses really understand their customers and can build more authentic relationships.”
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“We look forward to combining with Zendesk to advance our mission and accelerate our long-term growth strategy,” said Zander Lurie, CEO, Momentive.
Zander added, “This is a testament to the strength of our agile products and talented team. Zendesk and Momentive share a culture centered around our people, our communities and the customers we serve. The synergies between our companies are proximate and compelling. We are uniquely positioned to make Customer Intelligence a reality while delivering significant value for our shareholders.”
Acquisition to Create Powerful New Customer Intelligence Company
In today’s digital-first economy, it is imperative to build more meaningful relationships with customers. Meaning comes from a deep understanding of the customer and their experiences. Although businesses often have an endless supply of data, they lack actionable and personalized customer intelligence. Instead, businesses are left with a picture of the customer that is one-dimensional, impersonal, and incomplete.
— SurveyMonkey (@SurveyMonkey) October 28, 2021
Zendesk pioneered the ability to respond to what customers say and do, making it easier to deliver superior customer service. Momentive is a leader in capturing how customers think and feel, helping companies make critical decisions quickly and confidently.
With Momentive, Zendesk will create what businesses really need—a customer intelligence company that connects what customers say and do, with how they think and feel. The combination will give businesses the ability to:
- Listen to your customers: Collect critical information about customer needs, experiences and expectations
- Develop a rich picture: Bring a customer into focus by combining transactional data with market research and insights for the context to truly understand them
- Act on insights: Empower teams to take action with the full breadth of data about their customers as well as feedback and market insights to improve customer interactions
Terms of Transaction
The terms of the transaction provide for Momentive stockholders to receive 0.225 shares of Zendesk stock for each share of Momentive stock, a ratio which represents an implied value of approximately $28 per outstanding share of Momentive stock based on the 15-day volume-weighted average price of Zendesk common stock up to and including October 26, 2021.
Founded in 20227, Zendesk has become a key player in the customer service technology market. Zendesk is the champion of great service everywhere for everyone, and powers billions of conversations, connecting more than 100,000 brands with hundreds of millions of customers over telephony, chat, email, messaging, social channels, communities, review sites and help centers.
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