Smartsheet's stock rallies on $8.4 billion purchase by Blackstone and Vista

By Steve Gelsi

Company will go private at a price of $56.50 a share, six years after its initial public offering at $18 a share

Smartsheet Inc.'s stock rallied 6% Tuesday after the workplace-management software company agreed to be taken private by Blackstone Inc. and Vista Equity Partners for $8.4 billion, or $56.50 per share.

The buyout price for Smartsheet (SMAR) amounts to a 41% premium to the volume-weighted average closing price of the company's stock for 90 trading days ending on July 17, the last full day prior to media reports of a possible deal.

Blackstone (BX) executives said the company offers "innovative and market-leading solutions" to help clients "collaborate at scale to achieve superior results."

The deal will result in Smartsheet going private about six years after it held its initial public offering at $15 a share on April 27, 2018.

Dealmakers on the transaction include Smartsheet Chief Executive Mark Mader; Blackstone's Martin Brand, head of North America private equity and global co-head of technology investing, and Sachin Bavishi, a senior managing director; and Vista's Monti Saroya, flagship fund co-head and senior managing director, and John Stalder, managing director.

Goldman Sachs & Co. LLC and Morgan Stanley & Co. LLC advised the two private-equity firms on the deal, while Quatalyst Partners advised Smartsheet.

Smartsheet's stock is up 15.5% so far in 2024, while the S&P 500 SPX has risen about 20%.

-Steve Gelsi

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09-24-24 1000ET

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