Collaboration software manufacturer Smartsheet announced on Tuesday that Blackstone and Vista Equity Partners will acquire the company in an all-cash deal valued at approximately $8.4 billion. Shareholders of Smartsheet are set to receive $56.50 per share, representing a 41% premium over the company’s average closing share price for the past three months.
Smartsheet, which went public in 2018, has been evaluating interest from potential buyers for several months, aiming to compete with other software companies like Atlassian. CEO Mark Mader expressed confidence in the future, stating that the expertise and resources of Blackstone and Vista would help maintain Smartsheet as a thriving workplace for its employees. Following the announcement, shares of Smartsheet rose by 6%.
The transaction includes a 45-day go-shop period, allowing Smartsheet to seek alternative bids. Absent any other offers, the acquisition is anticipated to be finalized by January 2025, pending shareholder approval. Smartsheet was advised by Qatalyst, while Goldman Sachs and Morgan Stanley provided advisory services to the private equity bidders.
