In a significant move within the technology sector, Vista Equity Partners and Blackstone have reached an agreement to acquire Smartsheet, a prominent software-as-a-service (SaaS) workplace collaboration platform, for a hefty sum of $8.4 billion in cash. This acquisition places Smartsheet’s shares at a remarkable 41% premium over its 90-day average closing share price. Once the deal receives the necessary approvals from regulators and shareholders, existing shareholders are set to receive approximately $56.50 per share. Smartsheet has been given 45 days to entertain alternative acquisition proposals, allowing the board to terminate the existing deal if a superior offer emerges.
Mark Mader, Smartsheet’s CEO, underscored the strategic importance of the acquisition, emphasizing its potential to drive the company’s growth and fulfill its vision of modernizing work management on a global scale. Founded in 2005, Smartsheet provides an array of tools designed for task assignment, project tracking, and file sharing. Despite facing initial challenges with usability, the platform’s redesign led to a dramatic increase in users, and by 2010, Smartsheet boasted more than one million users across 20,000 organizations. Presently, Smartsheet integrates with key applications such as Google Apps, Microsoft Office, and platforms like Salesforce and Dropbox, positioning itself as a serious competitor to other products like Asana and Monday.com.
Smartsheet’s Recent Performance and Growth
One of the key factors contributing to the acquisition is Smartsheet’s robust performance in recent times. The most recent fiscal quarter saw the company generating $276.4 million in revenue, marking a notable 17% increase. Additionally, Smartsheet has projected its full-year revenue to be between $1.11 billion and $1.12 billion. These favorable financial results undoubtedly played a significant role in the negotiation of more advantageous terms for the acquisition. As of April 2024, Smartsheet reported holding $334 million in cash and having no debt, positioning the company with a valuation of $6.83 billion as of early September.
This acquisition will see Smartsheet joining the extensive portfolios of Vista and Blackstone, which have been actively expanding their presence in the enterprise technology sector. Recent notable acquisitions include Jaggaer, Nasuni, AirTrunk, and Civica. Blackstone’s Martin Brand and Sachin Bavishi highlighted Smartsheet’s strategic role in enhancing global workforce collaboration, signaling their intention to leverage their considerable resources to accelerate Smartsheet’s growth trajectory. The private equity sector experienced significant activity in Q2 of 2024, with firms announcing a total of 122 deals valued at $196 billion, which is nearly double the number of deals and total value reported in Q1 2024.
Strategic Importance of the Acquisition
Vista Equity Partners and Blackstone have agreed to purchase Smartsheet, a leading SaaS workplace collaboration platform, for $8.4 billion in cash. This deal values Smartsheet’s shares at a 41% premium over its 90-day average closing price. Once regulatory and shareholder approvals are secured, current shareholders will receive about $56.50 per share. Smartsheet has a 45-day window to explore other acquisition offers, allowing its board to terminate the deal if a superior proposal arises.
Mark Mader, CEO of Smartsheet, highlighted the strategic significance of the acquisition, noting its potential to accelerate the company’s growth and global vision for modernizing work management. Founded in 2005, Smartsheet offers tools for task assignment, project tracking, and file sharing. After initially struggling with usability, a redesign led to a substantial user increase, reaching over one million users by 2010 across 20,000 organizations. Today, Smartsheet integrates with essential applications like Google Apps, Microsoft Office, Salesforce, and Dropbox, competing with products such as Asana and Monday.com.
