Zendesk Inc Shares nosedives nearly 13% after the customer-service software company stated it decided not to pursue a sale as “no actionable” buyout proposals were received.
- The company stated that a part of a strategic review was to bolster shareholder value. The company contacted 26 potential buyers and partners, including 16 possible strategic partners and ten financial sponsors.
- Zendesk had also contacted a group of investors who had initially expressed interest in a purchase. The company’s market cap stands at around $9.87 billion.
- The customer-service software firm stated that despite extending the process several times, no actionable proposals were submitted, with final bidders citing unfavorable market conditions and financial challenges.
The shares, which are set to open at the lowest level since prices reported during regular-session hours since May 2020, have fallen 22.8% year to date.
ZEN down -9.58%, SPX down -0.14%
Source: Zendesk