On Monday, investment management firm Light Street Capital Management reaffirmed its decision to vote against the software firm Zendesk’s USD 10.2-billion go-private deal with investment firms Hellman & Friedman and Permira.
Also, Light Street asked the software firm to postpone the voting on the deal, which is due September 19. The investment firm wrote a letter to the board regarding this. However, the latter did not immediately respond to a request for comment.

It is to be noted that Light Street in August had proposed a recapitalization of Zendesk, with USD 2 billion incremental debt facility and a USD 2 billion preferred equity investment arranged by the investment firm.

Palo Alto-based Light Street had also suggested that the software maker issue a USD 5 billion tender offer at USD 82.50 per share for those willing to sell their shares. It pointed expansion of the board to 10 seats, including five directors from Light Street and other preferred equity shareholders.

However, Zendesk stated that Light Street’s proposal was vague and would result in uncertain value and increased financial, operational and governance risks.

Founded in 2007, it provides software-as-a-service (SaaS) products related to customer support, sales, and other customer communications. Last week, Institutional Shareholder Services, a proxy advisory company, warned that there may be enough downside risk if shareholders of Zendesk failed to approve the proposed deal.