Vista, Blackstone nearing $8-billion deal to buy Smartsheet, sources say

Endeavor group

16/09/2024 19:18

By Milana Vinn and Mike Spector
       NEW YORK, Sept 16 (Reuters) - Buyout firms Vista Equity
Partners and Blackstone  BX.N  are in advanced talks to acquire
Smartsheet  SMAR.N , in a deal that could value the
collaboration-software maker at close to $8 billion, people
familiar with the matter said on Monday. 
    The private-equity firms are discussing an offer of around
$56 per share for Smartsheet, the sources said, adding that the
deal could be signed in the coming weeks assuming there are no
last-minute snags. 
    Reuters was first to report this month that Vista and
Blackstone were in talks to acquire Smartsheet. Its shares have
risen more than 16% since Reuters reported in July that the
company was fielding interest from potential acquirers. 
    Vista and Blackstone have been in talks with direct lenders
to raise financing for the takeover, the sources said,
cautioning that terms could change as talks progress.
    Vista and Smartsheet did not immediately respond to requests
for comment. Blackstone declined to comment.  
    If the talks are successful, the deal would rank as one of
the largest take-private transactions of the year and come at a
time when the market is anticipating that the U.S. Federal
Reserve will start cutting interest rates, which could trigger a
jump in leveraged-buyout activity. 
    Silver Lake's $13-billion buyout of talent agency Endeavor
Group  EDR.N  is the biggest take-private deal so far this year,
according to LSEG data. 
    Smartsheet's software allows organizations to manage, track
and automate their workflow using a single platform, offering
more features and capabilities than Microsoft's  MSFT.O  Excel.
    It focuses on big corporate clients that have complex
operations, such as Pfizer  PFE.N , Cisco  CSCO.O  and American
Airlines  AAL.O , serving 85% of Fortune 500 companies,
according to its website. Some of its competitors offering
similar products, like Asana  ASAN.N  and Monday.com  6B6.SG ,
target smaller companies.
    Smartsheet reported second-quarter earnings this month that
beat market expectations, driven by robust growth in orders from
new enterprise customers. 
    "Smartsheet is effectively navigating the tough macro
environment, and we still believe the company will gain traction
with its new pricing strategy and product improvements,"
Morningstar analysts wrote in a Sept. 6 note. 

 (Reporting by Milana Vinn and Mike Spector in New York; Editing
by Anirban Sen and Rod Nickel)
 ((Anirban.Sen@thomsonreuters.com; Twitter: @asenjourno; Reuters
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