Sunday, February 9, 2025
HomeStocksSmartsheet to go private in $8.4 billion deal with PE firms Vista...

Smartsheet to go private in $8.4 billion deal with PE firms Vista and Blackstone

-



Workplace collaboration software maker Smartsheet will be taken private by buyout firms Vista Equity Partners and Blackstone in a deal worth $8.4 billion, the companies said on Tuesday.

Smartsheet shareholders will receive a cash payment of $56.50 per share, an 8.5% premium over the last closing price of $52.09.

Shares of the Bellevue, Washington-based company hit an over two-year high and were up 6% in early trading.

Smartsheet develops software that offers more features and capabilities than Microsoft’s Excel, targeting organizations seeking to manage, track, and automate workflows through a unified platform.

The company serves 85% of Fortune 500 companies, according to its website, including industry giants such as Pfizer, Procter & Gamble, and American Airlines .

The take-private deal also comes at a time when private equity deal-making has been on the rise, with an increase of 41% in deal volumes during the first half of the year, driven by several take-private deals. The deal includes a 45-day “go-shop” period that will expire on Nov. 8, during which the company and its advisors can weigh proposals from other interested parties. Reuters had previously reported that the buyout firms were nearing the acquisition of Smartsheet in a deal that valued it close to $8 billion.

The buyout has been unanimously approved by Smartsheet’s board, and the now privately-held company will continue to operate under the Smartsheet name and brand.

Smartsheet will have to pay $250 million to Vista and Blackstone if it cancels the deal, but only $125 million if it finds a better offer during the go-shop period. If Blackstone and Vista back out, Smartsheet gets a $500 million fee.

The enterprise software maker is known for prioritizing growth over profitability, having recorded losses since its 2005 inception, with the exception of the second quarter of this year, despite revenue growth.



Source link

LATEST POSTS

Is Disney a No-Brainer Buy? 3 Things It Still Has to Prove.

Disney (NYSE: DIS) released fiscal first-quarter earnings on Wednesday morning, and the market responded with a loud "meh." After opening...

Dividend stocks to buy: Do dividend yields (DV) now justify buying PSU stocks? 5 stocks with an upside potential of up to 25% and...

SynopsisFrom being the most sorted set of stocks in the first half of 2024, PSU stocks are again being relegated to the bad books...

India’s total trade to reach USD 1.8 trillion by 2033, growing at 6.4% CAGR: Report

New Delhi: India's total trade is expected to grow at a compound annual growth rate (CAGR) of 6.4 per cent through 2033, reaching USD...

The list of major companies laying off staff in the new year, including Boeing, Meta, Microsoft, and BP

Layoffs and other workforce reductions are continuing in 2025, following two years of significant job cuts across tech, media, finance, manufacturing, retail, and energy.While...

Most Popular

spot_img