Vista and Blackstone in talks to acquire software maker Smartsheet in a multi-billion-dollar deal

A consortium led by Vista Equity Partners and Blackstone is reportedly in discussions to acquire Smartsheet, a U.S.-based company specializing in workplace collaboration software, which currently holds a market value of about $7 billion, Reuters reported on Thursday, citing sources familiar with the situation.

These insiders, who spoke on condition of anonymity due to the confidential nature of the talks, indicated that a deal could be finalized within weeks if negotiations proceed smoothly. However, specific terms of the potential agreement have yet to be disclosed.

“A deal could be signed in the coming weeks if the talks don’t fall apart, the sources said, requesting anonymity as the discussions are confidential. The terms being discussed could not be immediately learned,” Reuters reported.

This potential acquisition comes as private equity firms have become increasingly active in the dealmaking space, following a lull in 2023 due to high interest rates that made financing buyouts challenging.

With the expectation of future interest rate cuts, private equity activity has picked up, particularly in sectors like technology and services. Deal volumes have seen a notable increase, with private equity transactions rising approximately 41% in the first half of the year, driven largely by several take-private deals.

Following news of the potential acquisition, Smartsheet’s shares surged nearly 10% on Thursday, prompting a brief halt in trading.

Back in July, Reuters was the first to report that Smartsheet, based in Bellevue, Washington, had engaged Qatalyst Partners to explore acquisition offers from private equity firms. Smartsheet, Vista (which owns a 4.7% stake in the company), and Blackstone all declined to comment on the ongoing discussions.

Founded in 2005 by Brent Frei, Eric Browne, John Creason, and Maria Colacurcio, Smartsheet offers a platform that enables organizations to manage, track, and automate workflows, providing more advanced features than traditional tools like Microsoft Excel. The company primarily serves large corporate clients with complex operations, including Pfizer, Cisco, and American Airlines, and boasts a customer base that includes 85% of the Fortune 500.

Smartsheet first caught our attention in March 2018 when it filed for an IPO. Just two months prior, it had acquired Converse.AI, a Scotland-based company specializing in business automation bots.

In 2019, Smartsheet made another significant move by acquiring Ternpro, the company behind the collaboration tool Slope, which aids businesses in content production. With the addition of Slope, Smartsheet expanded its capabilities, allowing users to review, proof, and comment on content directly within the core application while also offering standalone solutions to address complex marketing and creative workflows.

Smartsheet Team