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Vista and Blackstone said Tuesday that they will pay $56.50 per
Smartsheet Inc. share. The agreement includes a 45-day “go-shop”
period during which Smartsheet and its advisers seek alternative
acquisition proposals from certain third parties and possibly
enter into talks with other parties that make alternative
offers. Smartsheet's board will have the right to end the deal
with Vista and Blackstone to accept a superior proposal. The
go-shop period expires on Nov. 8.
“We look forward to partnering closely with Blackstone and
Smartsheet to support its ambitious goal of making its platform
accessible for every organization, team and worker relying on
collaborative work to achieve successful outcomes,” Monti Saroya,
co-head of Vista’s Flagship Fund and senior managing director,
and John Stalder, managing director at Vista, said in a
statement.
The announcement comes shortly after the Federal Reserve said
that it cut its benchmark interest rate by an unusually large
half-point. The central bank’s action lowered its key rate to
roughly 4.8%, down from a two-decade high of 5.3%. A rate cut
gives more favorable conditions for businesses looking at making
acquisitions.
The deal, which was approved by Smartsheet's board, is expected
to close in the company's fiscal fourth quarter. It still needs
approval from Smartsheet's shareholders.
Once the transaction closes, Smartsheet will become privately
held. The Bellevue, Washington company will continue to run
under the Smartsheet name and brand.
Shares surged more than 6% in morning trading.
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