A consortium led by Symphony Technology Group (STG) is set to acquire Momentive Global for $1.5BN.
Momentive, which created SurveyMonkey and offers insights management solutions, entered into a definitive agreement to sell out to the consortium for an all-cash transaction.
The deal is a considerable drop from the $4.1BN offered by Zendesk in October 2021.
Zander Lurie, Momentive CEO, commented:
This new chapter will enable Momentive to advance our long-term strategy and mission.
"STG’s 20 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.
"Today’s volatile business climate necessitates that organizations consistently collect feedback from their stakeholders. That’s where we shine."
As part of the agreement, shareholders will receive $9.46 per share, which consists of a 28 percent premium of the average closing price of the company’s stock for ten days of trading ending on March 13th.
Also, it includes a 46 percent premium on its closing stock price the day before media rumors of the sale began on October 19th last year.
The transaction is expected to complete in the second or third quarter of 2023, subject to conditions, which include the approval of Momentive shareholders and regulatory approvals.
David Ebersman, Chair of the Momentive Board of Directors, said: "The transaction is the result of an extensive and careful process to review strategic alternatives by the Momentive board.
"The board believes this is the right path for delivering certain and attractive value for shareholders.
The Momentive board voted unanimously in favor of the transaction.
Following the transaction, Momentive’s stock will be delisted from public markets.