Feedback on customer service is the new oil, with Zendesk (ZEN) — your friendly SaaS customer service platform — going in with an all-stock deal, giving $4.1b in exchange for buying Momentive Global Inc (MNTV.O), owner of the popular SurveyMonkey platform.
Laurie McCabe, Co-Founder at SMB Group, justifies the pricey deal by insisting that the company can get a better grip on customer attitudes with an easy-to-use survey tool to collect data and build a more complete picture of what the customer is thinking and feeling. From a financial standpoint, the company said that adding Momentive will push it to $3.5b in revenue a year ahead of schedule (in 2024), and it’s anticipating that it can even generate $4.5b in revenue by 2025.
why it matters
Concerns about the pricy buyout were felt by the markets on Friday, with Zendesk declining by almost 15% and Momentive down over 8%.