Blackstone and Vista Equity to Acquire Smartsheet for $8.4B
Significant Acquisition in the Tech Space
Smartsheet Inc. shares are soaring as Blackstone Inc. and Vista Equity Partners announce their decision to acquire the company for approximately $8.4 billion in cash.
Acquisition Details
According to the acquisition terms, Smartsheet shareholders will receive $56.50 per share. This deal represents a significant 41% premium compared to the stock's average closing price over the last 90 trading days up until July 17, 2024, and a 16% premium over the highest closing price in the past year.
Support from the Smartsheet Board
The acquisition has received unanimous backing from Smartsheet's Board of Directors, who are advocating for shareholders to approve the deal during an upcoming special meeting.
Opportunity for Alternative Proposals
The merger agreement outlines a 45-day “go-shop” period that allows Smartsheet and its advisors to explore other potential acquisition proposals. Should a superior offer arise, Smartsheet’s Board can cancel the current agreement.
Transaction Timeline
The deal is anticipated to finalize in the fourth quarter of Smartsheet’s fiscal year, which concludes on January 31, 2025. This timeline is contingent upon shareholder approval, regulatory clearances, and other necessary conditions.
Future of Smartsheet
Once the transaction is complete, Smartsheet will transition into a privately held entity, leading to the delisting of its Class A common stock while maintaining its branding and operational identity intact.
Investment Plans by Blackstone
Blackstone intends to invest in Smartsheet through its flagship private equity vehicle, along with a private equity strategy catering to individual investors. The firm looks forward to enhancing Smartsheet's growth and market presence.
Voices from Blackstone and Vista
Martin Brand from Blackstone stated that Smartsheet’s solutions are essential for teams navigating diverse and distributed workforces, enabling superior collaboration and results. He noted the importance of the company's tools for modern enterprises in ensuring streamlined operations.
Financial Performance of Smartsheet
This month, Smartsheet reported impressive financial figures, revealing an adjusted earnings per share (EPS) of $0.44, outperforming estimates of $0.29. Additionally, their sales for the quarter reached $276.41 million, surpassing expectations of $274.19 million.
Potential for Investors
Investors interested in Smartsheet may consider exposure through the Managed Portfolio Series Tremblant Global ETF and the Motley Fool Small-Cap Growth ETF, both of which include SMAR in their investment portfolios.
Current Stock Performance
As of the last check, Smartsheet shares have risen by 6.56%, trading at $55.51.
Frequently Asked Questions
What is the acquisition price per share for Smartsheet?
The acquisition is set at $56.50 per share.
Who are the companies acquiring Smartsheet?
Blackstone Inc. and Vista Equity Partners are the companies involved in this acquisition.
What are the expected benefits for Smartsheet post-acquisition?
Smartsheet will continue operating under its existing brand while benefiting from Blackstone’s investment strategies.
How will this acquisition affect current shareholders?
Current shareholders will receive the agreed cash price for their shares, reflecting a premium over recent trading prices.
Where can investors find exposure to Smartsheet?
Investors can look into ETFs such as the Managed Portfolio Series Tremblant Global ETF and the Motley Fool Small-Cap Growth ETF for exposure to Smartsheet.
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