Technology Shares Rise On M&A Action — Tech Roundup

Technology shares were mostly higher as private equity companies scoop up a software company.

Smartsheet has agreed to be acquired and taken private by Blackstone and Vista Equity Partners in an all-cash transaction valued at about $8.4 billion. Under the terms of the deal, Blackstone and Vista Equity would acquire the work-management software company for $56.50 a share, a premium to Monday's closing price of $52.09. The deal is expected to close in the fourth quarter of Smartsheet's fiscal 2025, which ends on Jan. 31. Smartsheet's board has unanimously approved the acquisition and recommends that shareholders vote in favor of it.

Piper Sandler upgraded Salesforce stock to overweight on new pricing, product bundling potential, and the software maker's ability to grow free cash flow.

Red Cat Holdings shares fell after the company reported a widened net loss for the fiscal first quarter. The drone technology company said its net loss for the three months ended July 31 was $12.4 million, or 17 cents a share, compared with a loss of $5.8 million, or 11 cents a share, in the year-prior period.

Write to Patrick Sullivan at patrick.sullivan@wsj.com

(END) Dow Jones Newswires

September 24, 2024 17:52 ET (21:52 GMT)

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