Smartsheet (NYSE:SMAR) has announced its acquisition by Blackstone and Vista Equity Partners in an all-cash transaction valued at approximately $8.4 billion. This represents a 41% premium to the 90-day volume weighted average closing price of Smartsheet stock prior to media reports regarding a possible sale transaction involving the company.
The purchase price of $56.50 per share in cash represents a 16% premium to the highest closing stock price over the last 12 months ending July 17, 2024.
The transaction is expected to close in the fourth quarter of Smartsheet’s fiscal year ending January 31, 2025, subject to the approval of Smartsheet’s shareholders and other customary closing conditions.
Upon completion of the transaction, Smartsheet’s class A common stock will no longer be listed on any public market, and the company will become a privately held entity. The company will continue to operate under the Smartsheet name and brand.
Smartsheet is known as the modern enterprise work management platform trusted by millions of people at companies across the globe, including approximately 85% of the 2024 Fortune 500 companies. It is considered a pioneer and market leader in its category.
Blackstone, the world’s largest alternative asset manager, is set to invest in Smartsheet through its flagship private equity vehicle and its private equity strategy for individual investors.
Vista Equity Partners, a leading global investment firm with more than $100 billion in assets under management, focuses exclusively on enterprise software, data, and technology-enabled organizations across private equity, permanent capital, credit, and public equity strategies.
The merger agreement for the transaction includes a 45-day “go-shop” period that allows Smartsheet and its advisors to actively solicit alternative acquisition proposals from certain third parties. However, there is no assurance that this process will result in a superior proposal.
The Smartsheet board of directors has unanimously approved the merger agreement and recommends that Smartsheet shareholders vote their shares in support of the transaction at a special meeting of shareholders to vote on the transaction. The market has reacted to these announcements by moving the company's shares 6.4% to a price of $55.43. If you want to know more, read the company's complete 8-K report here.
