Smartsheet, the rapidly growing collaboration software provider, said Tuesday it agreed to an all-cash deal worth about $8.4 billion with Blackstone and Vista Equity Partners. Shareholders will receive $56.50 per share, presenting a 41 percent premium over Smartsheet’s average three-month closing stock price.
The deal comes after months of explorations conducted by Smartsheet in order to measure interest from the potential buyer. After its IPO in 2018, the company was seeking to establish itself as a competitive player along with Atlassian and others.
Smartsheet CEO Mark Mader said of the partnership: “We are confident that the expertise and resources of Blackstone and Vista will help Smartsheet continue to be an exceptional workplace where our employees can thrive.” Accordingly, following the news announcement, the company’s shares have increased by 6%.
The deal will have a 45-day “go-shop” period when Smartsheet is allowed to approach other bidders for alternative offers. The deal would most probably be sealed in case there are no competitive bids by January 2025 as shareholders of the acquisition firms are likely to approve the deal.
Qatalyst advised Smartsheet in this deal while Goldman Sachs and Morgan Stanley guided the private equity firms that are making the acquisition.
This strategic partnership with Blackstone and Vista Equity Partners is likely to be an accelerator in the trajectory of the growth and operational capabilities for Smartsheet and is likely to enable the company to further innovate and grow its offerings in this competitive space for collaboration software. With an increasing interest in technology that enables organizations to collaborate better, understand their structures, and get better project management going, the combination of the businesses in Smartsheet with the resources of these established investment houses put the company in a sweet spot for continued success.
This acquisition would be one of the most significant milestones for Smartsheet as it further cements the next phase in the growth journey under the stewardship of two of the largest and most powerful private equity firms in the industry. The stakeholders will continue to track the development of this deal that has entered its go-shop period, in case of any competing bids that can catalyze a course change in this high-profile acquisition.
