Highlights Transaction with Zendesk as Next Natural Step in Evolution to Support Accelerated Growth and Value Creation for Stockholders
Momentive Global (NASDAQ: MNTV), an agile experience management company (formerly SurveyMonkey), today mailed a letter to stockholders in connection with the Special Meeting of Stockholders (the “Special Meeting”) that has been called to approve proposals relating to the Company’s previously announced transaction with Zendesk, Inc. (NYSE: ZEN).
The Momentive Board of Directors unanimously recommends that Momentive stockholders vote on the WHITE proxy card “FOR” all proposals relating to the proposed transaction with Zendesk ahead of the Special Meeting, which has been scheduled for February 25, 2022.
Marketing Technology News: Encore® Names Amanda Armstrong SVPof Brand and Community Engagement
The full text of the letter that was mailed to stockholders is as follows:
Dear Fellow Momentive Stockholder:
You will be asked to make an important decision regarding the future of our company at Momentive’s Special Meeting of Stockholders (the “Special Meeting”), which is scheduled to be held on February 25th.
As a stockholder of Momentive, you will have the opportunity to approve the Company’s proposed combination with Zendesk, which is designed to deliver enhanced value for our stockholders and customers by creating a differentiated platform that gives businesses what they need – deeper customer intelligence. With a broader set of solutions and a demonstrably larger customer base to cross sell against, Zendesk and Momentive will be uniquely positioned to serve a global market and generate significant growth. Put simply, this transaction will enable Momentive stockholders to participate in the upside potential of a larger scale, faster growing company with a strong profitability profile.
The Momentive Board of Directors unanimously recommends that Momentive stockholders vote on the WHITE proxy card “FOR” all proposals relating to the proposed transaction with Zendesk today.
Momentive Has Transformed into a
Proven Enterprise-Grade Experience Management Platform
Momentive has grown significantly from its early SurveyMonkey roots. Originally founded as a cloud-based survey tool, the Company has evolved over the last five years into an experience management software company. With a portfolio of compelling, enterprise-grade solutions that include customer experience, market research and enterprise feedback management, Momentive has more than 19 million active users and empowers more than 345,000 organizations around the world to shape what’s next.1
The past five years have been especially transformative for the Company as it has executed a strategy to move upmarket, scale its sales-assisted business and better serve a greater number of enterprise customers through a broader suite of solutions. By deepening its analytics, launching purpose-built software solutions and investing in expanded go-to-market (GTM) channels, the Company has transformed at scale and established itself as a powerful enterprise platform. Building on the transformation, the Company repositioned itself as Momentive in 2021 to better reflect the breadth and depth of strategy and products.
Momentive’s up-market transformation has made significant progress, and the Company’s initiatives are already yielding compelling financial results. Today, the Company has a total of approximately 10,500 sales-assisted customers and 345,000 organizational customers, including 95% of the Fortune 500.2 In Q3 2021, Momentive’s sales-assisted channel reported $150 million in run rate revenue, up 37% year over year and five times greater than the $30 million run rate revenue achieved three years ago.3 The Company believes its sales-assisted channel revenue growth will continue to outpace total company revenue growth, driven by strong products and a maturing existing customer expansion motion. This will serve as a natural tailwind to the Company’s total growth rate as this higher growth sales-assisted channel becomes a larger portion of overall revenue mix.
Marketing Technology News: CrafterCMS Marketplace Includes New Google Plugins
Combining with Zendesk is the Next Natural Step in Momentive’s Evolution,
and Will Accelerate the Growth and Value Creation Underway
This transaction furthers Momentive’s ongoing journey upmarket and represents a next natural step for the Company – it accelerates growth, provides a stronger set of solutions to more customers and delivers a higher value potential to Momentive stockholders than could be achieved as an independent company.
The combination with Zendesk creates a valuable customer intelligence platform that customers are increasingly asking for in the market. In Q3 2021 alone, over 300 Momentive customers requested deeper integration with the Zendesk platform.4 By creating a competitively differentiated solution that gives customers of both companies access to more data and context within a system of action, Momentive and Zendesk will be able to capitalize on cross selling opportunities that will help drive estimated revenue synergies of approximately $275 million in 2025.5 Combining with Zendesk, which has a proven track record of enterprise adoption across multiple continents, will also accelerate Momentive’s sales-assisted transformation and create a scaled platform of more than $2 billion in revenue in 20226 that is expected to achieve a projected 27% combined compounded annual growth rate (CAGR) from 2021 to 2025.7
With a stronger joint platform and access to Zendesk’s base of over 110,000 customers, Momentive will expand its capabilities into untapped global markets, driving greater growth at scale.8 Today, approximately 36% of Momentive’s sales come from outside the U.S.9 By combining with Zendesk, which currently generates 50% of its revenue internationally and has half of its sales team outside the U.S., Momentive will have greater reach and significantly expand its geographic presence and overall revenue opportunities.10 With Zendesk, Momentive will be able to tap into a global total addressable market of approximately $165 billion by 2025.11
Marketing Technology News: MarTech Interview with Melton Littlepage, Chief Marketing Officer at Outreach