Zendesk Stock Soars on Report of Fresh Buyout Deal

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Pedestrians walk past the entrance to Zendesk headquarters in San Francisco.


David Paul Morris/Bloomberg

Zendesk

soared early Friday after The Wall Street Journal reported the provider of cloud-based customer-service software was in takeover talks with a group of buyout firms.

Zendesk

(ticker: ZEN) jumped more than 45% to $84.15 in premarket trading after the Journal said a deal with a group that includes Hellman & Friedman and Permira could be reached in the coming days as long as the discussions don’t fall apart. The Journal cited people familiar with the matter.

Barron’s reached out to Zendesk for comment on The Wall Street Journal article.

A price for Zendesk couldn’t be learned, the Journal added. The company has a market cap of more than $7 billion.

Zendesk said earlier this month that it planned to continue on as an independent public company after not finding a buyer.

The Journal reported last week that Zendesk was in talks with activist investor Jana Partners that could include the departure of the company’s chief executive. The Journal said it wasn’t certain where those talks stood in light of the fresh buyout deal.

Write to Joe Woelfel at joseph.woelfel@barrons.com