Private equity firms Vista Equity Partners (VAP) and Blackstone (Blackstone) are set to purchase Smartsheet, an online software company, in a cash-only transaction for $8.4 billion.
According to a joint press release made on Tuesday, Vista and Blackstone have agreed to purchase Smartsheet shares for $56.50 per share.
The agreement also includes a “go-shop period” of 45 days, during which Smartsheet management can solicit other proposals from potential buyers.
Smartsheet’s Board has the option of terminating the agreement with Vista or Blackstone if a better offer is made. This window for alternative offers closes on November 8
In a joint press release, Monti Saroya and John Stalder, Vista’s managing director and co-head of the Flagship Fund at Vista, stated:
We look forward to working closely with Blackstone to achieve its ambitious goal to make its platform available to every organization, team, and worker who relies on collaborative work for successful outcomes.
This acquisition comes just a few days after the Federal Reserve cut its key interest rates by half a point, bringing them down to 4.8% from 5.3%.
The lower interest rates could make it easier for companies to engage in large-scale purchases, giving a boost to deals like Vista’s and Blackstone’s purchase of Smartsheet.
Smartsheet’s board of directors has already approved the deal, which will be finalized in the company’s fourth fiscal quarter, subject to shareholder approval.
Smartsheet, a Washington-based company with its headquarters in Bellevue will become a privately owned company once the acquisition is completed. It will retain its current brand and name.
Smartsheet’s stock soared over 6% in early morning trading following the announcement of the acquisition.
This post Vista and Blackstone acquire software maker Smartsheet for $8.4 billion may be updated as new information unfolds
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