Tech

Blackstone and Vista Equity Partners to acquire software maker Smartsheet for $8.4 billion

Published Tue, Sep 24 20249:07 AM EDTUpdated Tue, Sep 24 202411:17 AM EDT
thumbnail

Rohan Goswami@in/rohangoswamicnbc/@rogoswami

WATCH LIVE

Key Points
  • Blackstone and Vista Equity Partners will acquire Smartsheet in an $8.4 billion deal.
  • The all-cash bid of $56.50 per share is about a 41% premium to the company’s unaffected average share price.
  • The collaboration software maker went public in 2018 alongside other enterprise software companies, including DocuSign.

In this article

  • SMAR
Smartsheet CEO Mark Mader.
Source: Smartsheet

Collaboration software maker Smartsheet on Tuesday announced Blackstone and Vista Equity Partners will acquire it in an all-cash deal valuing the company at about $8.4 billion.

Stockholders will receive $56.50 per share, a 41% premium to Smartsheet’s average closing price over the last three months.

The company had been gauging interest from potential acquirers for several months. Smartsheet went public in 2018 and sought to go head-to-head with other software companies like Atlassian.

“As we look to the future, we are confident that Blackstone and Vista’s expertise and resources will help us ensure Smartsheet remains a great place to work where our employees thrive,” CEO Mark Mader said in a release. Smartsheet shares rose 6% on the news.

The transaction has a 45-day go-shop period, allowing Smartsheet to solicit other bidders. Barring another offer, the deal is expected to close by January 2025, pending shareholder approval.

Qatalyst advised Smartsheet. Goldman Sachs and Morgan Stanley advised the private equity bidders.

Don’t miss these insights from CNBC PRO

  • 3 reasons why Warren Buffett is shunning stocks — including his own
  • Goldman’s election scenario probabilities and how the S&P 500 will react
  • Here’s what usually happens to the S&P 500 during a presidential election week
  • What Nvidia’s Dow inclusion means for the chipmaker, according to history
Blackstone President Jon Gray on the economy, Fed's rate path outlook and data centers

watch now

VIDEO6:5406:54
Blackstone President Jon Gray on the economy, Fed’s rate path outlook and data centers
Squawk on the Street