Connect with us

Hi, what are you looking for?

Daily Market SolutionDaily Market Solution

Investing

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

(Reuters) -Workplace collaboration software maker Smartsheet (NYSE:SMAR) will be taken private by buyout firms Vista Equity Partners and Blackstone (NYSE:BX) 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 (NASDAQ:MSFT)’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 (NYSE:PFE), Procter & Gamble (NYSE:PG), and American Airlines (NASDAQ:AAL).

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.

This post appeared first on investing.com







    You May Also Like

    Editor's Pick

    Extremist supporters of former president Donald Trump are lashing out online against Usha Vance, the wife of Trump’s running mate, Sen. J.D. Vance (R-Ohio),...

    Investing

    Overview Energy Fuels (TSX:EFR,NYSE:UUUU) has been the largest producer of uranium in the United States and an emerging producer of rare earth elements (REEs)....

    Investing

    Investor Insight Silver prices breached $30/oz in the second half of May 2024 as investor demand drove prices to their highest in more than...

    Investing

    Overview Flynn Gold Limited (ASX: FG1) is an Australian mineral exploration company with a portfolio of projects in Tasmania and Western Australia. Tasmania is...

    Disclaimer: Dailymarketsolution.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.


    Copyright © 2024 dailymarketsolution.com