Vista and Blackstone to acquire Smartsheet (SMAR.US) at a premium, expected to close in early 2023
1min read Based on cloud collaboration software maker Smartsheet (SMAR.US) agreed to be sold for $8.4 billion in cash to private equity firm Vista Equity Partners and Blackstone Group (BX.US), its shares surged more than 6% at the opening of the US stock market, and its total market value is now hovering around $7.7 billion, still below the acquisition price.
According to a statement released on Tuesday, Smartsheet holders will receive $56.50 per share in cash. The acquisition price is 41% higher than the weighted average closing price of Smartsheet's stock over the past 90 trading days as of July 17. In comparison, Smartsheet's stock price fluctuated around $55.2 on Tuesday.
The acquisition includes a 45-day "go shop" period, which will expire on November 8. The heavyweight acquisition is expected to be completed in the fourth quarter of Smartsheet's fiscal year ending January 31, 2023, when Smartsheet is likely to become a private company.
Earlier in the day, media reports on Monday evening suggested that a private equity firm was close to a deal to buy the collaboration software maker for about $8 billion, which could be officially announced in the coming days.
Qatalyst Partners will serve as Smartsheet's exclusive financial advisor, and Fenwick & West LLP will serve as Smartsheet's legal counsel.
Goldman and Morgan Stanley will serve as financial advisors to Blackstone and Vista Equity Partners, and Kirkland & Ellis LLP and Simpson Thacher & Bartlett LLP will serve as legal counsel to Blackstone and Vista Equity Partners.
Smartsheet is a technology company that provides cloud-based project management and cloud-based collaboration software to help businesses plan, capture, manage, automate, and report on detailed work details and the entire process to improve business operations and productivity.