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Key Points
- Vista Equity Partners and Blackstone are acquiring Smartsheet for $8.4 billion, paying $56.5 per share, a 41% premium.
- The partnership aims to bolster Smartsheet’s growth and innovation in the enterprise software sector, pending regulatory approvals.
- Vista’s leadership has generated $14.3 billion in gains since 2021, enhancing its portfolio with Smartsheet’s high-growth potential.
Vista Equity Partners, led by Robert F. Smith, America’s second-richest Black individual, is partnering with global investment giant Blackstone for an all-cash acquisition of Smartsheet, a leading enterprise work management platform, valued at $8.4 billion.
The transaction, pending regulatory approvals, highlights a strategic collaboration between two major players in the enterprise software sector, aiming to enhance Smartsheet’s growth and innovation.
Significant shareholder value
The definitive agreement stipulates that Vista and Blackstone will acquire all outstanding shares of Smartsheet for $56.50 each, which represents a 41 percent premium over the company’s 90-day volume-weighted average stock price prior to the announcement.
This acquisition is expected to deliver substantial value to Smartsheet’s shareholders and aligns seamlessly with the investment strategies of both firms.
Strengthening Smartsheet’s market position
Smartsheet is recognized for its innovative platform that streamlines operations, enhances collaboration, and improves productivity for businesses.
Vista’s Co-Head of Flagship Fund, John Stalder, praised the platform's capabilities and expressed enthusiasm for collaborating with Blackstone and Smartsheet to support the company’s ambitious goals.
With a combined expertise, Vista and Blackstone aim to accelerate Smartsheet's growth and reinforce its position as a leader in the enterprise work management sector.
Vista Partners targets high-growth tech
With $101 billion in assets under management, Vista Equity Partners has a strong track record of identifying and investing in high-growth technology companies.
Under Robert F. Smith's leadership, the firm has realized $14.3 billion in gains since 2021 and raised $20 billion for its latest flagship fund.
The acquisition of Smartsheet adds to Vista's extensive portfolio and sets the stage for future growth in the software industry.
As this deal unfolds, it remains to be seen how Vista and Blackstone will leverage their collective strengths to maximize Smartsheet's potential.
