Vista and Blackstone to acquire software maker Smartsheet in $8.4 billion deal

In a major move, private equity firms Vista Equity Partners and Blackstone are set to acquire Smartsheet, a cloud-based software company, for approximately $8.4 billion in an all-cash transaction.

Under the terms of the agreement, Vista and Blackstone will purchase Smartsheet shares at $56.50 each, according to a joint announcement made on Tuesday.

The deal also includes a 45-day "go-shop" period, during which Smartsheet's management can solicit alternative proposals from other potential buyers.

Should a more favorable offer emerge, Smartsheet’s board holds the option to terminate the agreement with Vista and Blackstone in favor of a superior bid. This window for alternative proposals closes on November 8.

In a joint statement, Monti Saroya, co-head of Vista’s Flagship Fund and senior managing director, alongside John Stalder, managing director at Vista, said:

This acquisition comes shortly after the Federal Reserve's decision to cut its key interest rate by half a percentage point, bringing it down to around 4.8% from the previous 5.3%.

The reduction in interest rates could make conditions more favorable for companies engaging in large-scale acquisitions, providing a timely boost for deals like Vista and Blackstone’s purchase of Smartsheet.

Smartsheet's board has already approved the transaction, which is anticipated to be finalized during the company’s fiscal fourth quarter, pending approval from its shareholders.

Once the acquisition is complete, Smartsheet, which is headquartered in Bellevue, Washington, will operate as a privately held company. It will maintain its current name and brand.

Following the news of the acquisition, Smartsheet's shares surged by over 6% during early morning trading.