Proxy firm ISS recommends Zendesk shareholders back $10.2 billion go-private deal
Reuters
Published Sep 06, 2022 03:29PM ET
(Reuters) - Software company Zendesk (NYSE:ZEN) Inc's shareholders should vote for a planned acquisition by a group of private equity firms, a prominent proxy advisory firm recommended on Tuesday.
Institutional Shareholder Services (ISS) warned that there would be "significant downside risk" if Zendesk shareholders failed to approve the proposed deal.
The proxy firm issued its recommendation days before shareholders are set to vote on Sept. 19 and after hedge fund and investor Light Street Capital Management proposed that Zendesk remain independent.
"Support FOR the proposed transaction is warranted," ISS wrote in its report, citing value in the deal and "significant downside risk of the standalone option".
Last week, Light Street said it would vote against the proposal by a consortium led by private equity firms Hellman & Friedman and Permira to pay $77.50 a share in cash for Zendesk.
Light Street instead proposed that it remain a standalone public company and find a new top boss.
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Written By: Reuters
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