Smartsheet Set for Acquisition by Blackstone and Vista Equity Partners, Shares Surge

Smartsheet has announced an acquisition by Blackstone and Vista Equity Partners in an all-cash deal valued at approximately $8.4 billion. Following the announcement, shares of Smartsheet saw a 6% increase in early trading.

As part of the acquisition, Smartsheet shareholders will receive $56.50 per share, which represents a 41% premium over the company’s 90-day volume-weighted average stock price prior to reports of a potential sale that emerged in mid-July.

Known for its enterprise platform for work management, Smartsheet has experienced significant growth over the past decade. CEO Mark Mader emphasized the importance of this acquisition, stating, “Our next phase of growth and customer success is underway, and we look forward to partnering with Blackstone and Vista to accelerate our vision of modernizing work management for enterprises globally.”

This acquisition underscores the increasing demand for collaborative work solutions, as many enterprises adopt Smartsheet’s platform to manage a variety of business processes. Blackstone executives acknowledged the platform’s vital role in facilitating collaboration among teams to achieve better outcomes.

Vista Equity Partners also praised Smartsheet’s ability to boost productivity and enhance decision-making in modern enterprises. They noted that “modern enterprises rely on Smartsheet’s simple and scalable solutions to manage a diverse range of business-critical processes every single day because they enable seamless collaboration, enhanced productivity, and faster and more informed decision-making.”

The deal includes a 45-day “go-shop” period during which Smartsheet can seek alternative offers. The transaction is anticipated to close by January 2025. Once finalized, Smartsheet will be delisted from public markets and transition to being a privately held company.