No stopping for software acquisitions

No stopping for software acquisitions

With growth-stocks beaten down 40-50% from their peaks from barely 2 months ago, software companies over the $10 billion mark are becoming easy acquisition targets for sharks on Wall Street and Tech industry titans.

Two more splashy deals were announced this week: ✌️

Low-balled: First, Zendesk, the $15 billion seller of cloud-based customer chat tools, got an unsolicited takeout offer from a consortium of private equity firms — including Hellman & Friedman, Permira and Advent.

The trio gave Zendesk a $17 billion price, but Zen management thinks that’s too low — and ended up outright rejecting the bid.

Fyi, Zendesk is right in the middle of its $5 billion take out of data intelligence and surveying firm, SurveyMonkey. Anyway, rumors are a few more private equity firms are thinking of making a run for the company.

Worth noting41% of all the money invested by private equity firms in 2021, went into software companies. Proofpoint, Cloudera, RealPage, McAfee were some hot takeouts. 2022 won’t be all that different.