Vista Equity Partners and Blackstone (BX) are close to finalizing an $8 billion deal to acquire Smartsheet (SMAR), a prominent collaboration-software company. Sources familiar with the matter report that the private equity giants are offering approximately $56 per share for Smartsheet, with the deal expected to close in the coming weeks, barring any unforeseen obstacles. Smartsheet's stock has jumped over 16% since Reuters initially reported in July that the company was attracting acquisition interest.
The two firms are also in discussions with direct lenders to secure financing for the takeover, though specific terms may still evolve. If successful, this acquisition would be one of the largest take-private deals of 2024, following Silver Lake’s $13-billion buyout of talent agency Endeavor Group.
This potential acquisition highlights Smartsheet's growing prominence in the enterprise software market. The platform allows large organizations to streamline and automate complex workflows, catering to 85% of Fortune 500 companies, including industry heavyweights like Pfizer, Cisco, and American Airlines. Smartsheet competes with other software providers such as Asana and Monday.com, which generally target smaller businesses.
Smartsheet recently reported second-quarter earnings that outpaced market expectations, driven by strong demand from new enterprise clients. Morningstar analysts praised the company’s ability to navigate challenging economic conditions, pointing to a new pricing strategy and product enhancements as key growth drivers. As the U.S. Federal Reserve is expected to lower interest rates in the near future, the deal signals a potential uptick in leveraged buyout activity across the market.
While Vista and Smartsheet have not commented on the talks, and Blackstone declined to comment, the deal would mark a significant milestone in the private equity space if completed.
The two firms are also in discussions with direct lenders to secure financing for the takeover, though specific terms may still evolve. If successful, this acquisition would be one of the largest take-private deals of 2024, following Silver Lake’s $13-billion buyout of talent agency Endeavor Group.
This potential acquisition highlights Smartsheet's growing prominence in the enterprise software market. The platform allows large organizations to streamline and automate complex workflows, catering to 85% of Fortune 500 companies, including industry heavyweights like Pfizer, Cisco, and American Airlines. Smartsheet competes with other software providers such as Asana and Monday.com, which generally target smaller businesses.
Smartsheet recently reported second-quarter earnings that outpaced market expectations, driven by strong demand from new enterprise clients. Morningstar analysts praised the company’s ability to navigate challenging economic conditions, pointing to a new pricing strategy and product enhancements as key growth drivers. As the U.S. Federal Reserve is expected to lower interest rates in the near future, the deal signals a potential uptick in leveraged buyout activity across the market.
While Vista and Smartsheet have not commented on the talks, and Blackstone declined to comment, the deal would mark a significant milestone in the private equity space if completed.