- Following pressure from an activist investor, Zendesk is up for sale.
- There are many potential acquirers, but for the purpose of this thesis, I consider six which could considerably expand their customer engagement suite through a deal.
- Out of these, if one looks beyond advertisement revenues to the less glamorous office productivity tools, Google should be the one to benefit the most from an acquisition.
- For this purpose, a comparison with Microsoft helps to identify the margin benefits that Zendesk's digital customer experience tools could bring to Google's cloud segment.
- Based on recent M&A data in the IT industry and the Twitter purchase by Elon Musk, I consider that Zendesk has the potential to produce another 13% upside.
For further details see:
Google Should Benefit From A Potential Zendesk Acquisition