Smartsheet to be acquired by Blackstone and Vista Equity Partners in $8.4 billion deal

Earlier this month, we wrote about Smartsheet following reports that a consortium led by Vista Equity Partners and Blackstone was in discussions to acquire the workplace collaboration software company. Today, Reuters reported that Smartsheet has agreed to go private in an $8.4 billion deal with the two buyout firms.

In a press release, Blackstone also confirmed that Smartsheet has reached a definitive agreement to be acquired by funds managed by Blackstone and Vista Equity Partners in an all-cash deal valued at around $8.4 billion.

Under the terms of the agreement, Smartsheet shareholders will receive $56.50 per share in cash, marking an 8.5% premium over the company’s last closing price of $52.09, Reuters reported. Following the announcement, Smartsheet’s stock surged 6%, reaching its highest level in over two years.

“For more than a decade, we have built a thriving community of employees, partners, and customers, each focused on building and benefiting from Smartsheet’s industry-leading work management platform. Our next phase of growth and customer success is underway, and we look forward to partnering with Blackstone and Vista Equity Partners to accelerate our vision of modernizing work management for enterprises, globally,” Smartsheet CEO Mark Mader said.

Smartsheet is known for developing software that goes beyond traditional tools like Microsoft Excel, catering to organizations looking for a more robust solution to manage, track, and automate workflows. The company’s platform serves major corporations, including Pfizer, Procter & Gamble, and American Airlines, with 85% of Fortune 500 companies using its services.

This take-private deal comes amidst a broader trend of increased private equity activity, with deal volumes up by 41% in the first half of the year, largely driven by a wave of similar acquisitions.

Back in July, it was first reported that Smartsheet had enlisted Qatalyst Partners to explore acquisition offers from private equity firms. At that time, Smartsheet, Vista (which already owns a 4.7% stake in the company), and Blackstone declined to comment on the discussions.

Founded in 2005 by Brent Frei, Eric Browne, John Creason, and Maria Colacurcio, Smartsheet has grown into a key player in workflow automation, serving large enterprises with complex needs. The company initially gained wider attention in 2018 when it filed for an IPO. Just before that, it acquired Converse.AI, a Scotland-based firm specializing in business automation bots.

In 2019, Smartsheet further expanded its offerings by acquiring Ternpro, the company behind Slope, a tool that helps businesses streamline content production. With this acquisition, Smartsheet added new capabilities, enabling users to review, proof, and comment on content within the platform while also addressing the demands of creative and marketing workflows.