Vista, Blackstone to buy Smartsheet for $8.4 bln in one of the biggest take-private deals of the year (updated)

Smartsheet

24/09/2024 14:25

(Updates with details and background)
       Sept 24 (Reuters) - Buyout firms Vista Equity Partners
and Blackstone  BX.N  will purchase collaboration-software maker
Smartsheet  SMAR.N  for $8.4 bln in one of the largest
take-private deals this year, the companies said on Tuesday.
    Vista and Blackstone have offered $56.50 in cash for each
share of Smartsheet, which represents a premium of 24.6% to the
stock's closing price on July 17, when Reuters first reported
that Smartsheet had tapped investment bankers after attracting
acquisition interest from the buyout firms.
    Smartsheet shares were up 6.1% in pre-market trading at
$55.1.
    Private equity firms are targeting acquisitions in the
technology sector this year, driven by the strong expectation of
an interest rate cut by the U.S. Federal Reserve after elevated
interest rates weighed on leveraged buyouts in 2023. 
    Previously, Silver Lake had completed the largest
take-private deal of the year in April by acquiring talent and
entertainment agency Endeavor Group Holdings  EDR.N  for $13
billion, according to LSEG data.
    The Smartsheet deal is expected to close in the fourth
quarter and includes a 45-day "go-shop" period that will expire
on Nov. 8, during which the company and its advisors can weigh
proposals from other interested parties. 
 
    
    
    
  

 (Reporting by Rishi Kant in Bengaluru; Editing by Tasim Zahid)
 ((Rishi.Kant@thomsonreuters.com;))