Smartsheet (NYSE: SMAR), a leading platform for modern work management, announced yesterday that it has entered into a definitive agreement to be acquired by Vista Equity Partners and Blackstone in a joint all-cash transaction valued at approximately $8.4 billion.
The acquisition positions both firms to leverage their combined expertise and resources to enhance Smartsheet’s market leadership and expand its innovative solutions for modern enterprises.
Under the terms of the agreement, Vista and Blackstone will acquire all outstanding shares of Smartsheet for $56.50 per share, representing a 41% premium over the company’s 90-day volume-weighted average price as of July 17, 2024, and a 16% premium over the highest stock price in the past year.
Vista and Blackstone: A Strategic Partnership
This acquisition underscores the strategic alignment between Vista Equity Partners, a global leader in enterprise software investments, and Blackstone, one of the world’s largest private equity firms. Together, they plan to support Smartsheet’s growth trajectory by accelerating investments in cutting-edge work management solutions.
Monti Saroya, Co-Head of Vista’s Flagship Fund and Senior Managing Director, emphasized the importance of Smartsheet’s platform in today’s business environment. “Smartsheet’s scalable, user-friendly solutions are mission-critical for modern enterprises, helping teams collaborate more effectively, boost productivity, and make faster, more informed decisions,” Saroya said. “We are excited to partner with Blackstone to support Smartsheet’s continued innovation and bring its solutions to an even broader range of organizations and teams.”
Martin Brand, Head of North America Private Equity and Global Co-Head of Technology Investing at Blackstone, echoed the sentiment. “Smartsheet’s innovative work management platform is a vital tool for increasingly distributed and cross-functional teams,” Brand noted. “By partnering with Vista, we look forward to leveraging our collective scale and expertise to drive long-term growth and innovation for Smartsheet.”
Building on Smartsheet’s Success
Mark Mader, CEO of Smartsheet, expressed optimism about the future under new ownership. “For over a decade, we’ve built a leading work management platform that empowers teams globally,” Mader said. “This transaction is a testament to the dedication of our employees and partners. We’re confident that Vista and Blackstone’s resources will help us deliver even greater value to our customers while maintaining a thriving workplace for our employees.”
Smartsheet, trusted by approximately 85% of Fortune 500 companies, will continue to operate under its existing brand while scaling its solutions for businesses worldwide.
Transaction Terms and Go-Shop Period
As part of the merger agreement, Smartsheet will enter a 45-day “go-shop” period, allowing the company to explore alternative acquisition proposals. While there is no guarantee of superior offers, Smartsheet has the flexibility to negotiate with any parties that present a better proposal.
Pending shareholder approval and regulatory clearances, the transaction is expected to close in the fourth quarter of Smartsheet’s fiscal year ending January 31, 2025. Upon completion, Smartsheet will become a privately held company, and its Class A common stock will be delisted from public markets.
by Tony O. Lawson
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