Smartsheet to Go Private in $8.4 Billion Deal with PE Firms Vista and Blackstone, Reports Reuters

Workplace collaboration software company Smartsheet has announced it will be acquired by private equity firms Vista Equity Partners and Blackstone in a deal valued at $8.4 billion. According to statements from the firms, Smartsheet shareholders will receive $56.50 for each share they own, representing an 8.5% premium over the company’s recent closing price of $52.09.

Shares of the Bellevue, Washington-based company surged by 6% in early trading, reaching their highest level in over two years. Smartsheet offers software that provides more comprehensive features compared to traditional tools like Microsoft Excel, catering to organizations that need to manage, track, and automate workflows through an integrated platform.

The company counts 85% of Fortune 500 companies among its clients, including industry leaders like Pfizer, Procter & Gamble, and American Airlines.

This acquisition comes at a time when private equity activity has seen a significant uptick, with a 41% rise in deal volumes during the first half of the year, largely attributed to similar take-private transactions.

The agreement includes a 45-day “go-shop” period, expiring on November 8, allowing the company and its advisors to consider offers from other potential buyers. Previous reports indicated that the buyout firms were close to a deal valued at approximately $8 billion.

The Smartsheet board has unanimously approved the acquisition, and the company will continue to function under its established name and brand following the transaction.

Should the deal be canceled, Smartsheet will owe $250 million to Vista and Blackstone; however, if a superior offer emerges during the go-shop period, the fee would be reduced to $125 million. Conversely, if either of the buyout firms withdraws, Smartsheet would receive a $500 million termination fee.

While Smartsheet has focused on growth rather than profitability since its founding in 2005—recording losses until the second quarter of this year despite revenue increases—it has garnered attention for its robust software solutions.