SurveyMonkey parent Momentive has agreed to be acquired by a consortium led by insights sector investment firm Symphony Technology Group (STG), for approximately $1.5bn.
In October 2021, online customer service and CX firm Zendesk made a bid to acquire Momentive, but Zendesk's shareholders then rejected the proposed deal, although some of Momentive's own shareholders claimed that the price tag of $3.8 - 4.0bn undervalued the business. After the deal was pulled, Momentive's share price dived, and Momentive's Board has now accepted the considerably lower $1.5bn all-cash offer.
Just a month ago, Momentive reported revenue up 8% to $480.9m for full year 2022, despite which it announced plans to cut another 14% of its workforce. The firm had already made 11% of staff redundant last October, as part of a restructuring plan to improve operating margins and efficiency.
The takeover by STG, which was approved unanimously by the Momentive Board of Directors, is expected to close in the second or third quarter of 2023. Zander Lurie, Momentive CEO, comments: 'This new chapter will enable Momentive to advance our long-term strategy and mission. STG's twenty years of investment experience in software, analytics and data companies will provide us with invaluable expertise as we scale our customer base and product suite'.
Web site: www.momentive.ai .
All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas unless otherwise stated.