Healthcare IT company Model N to go private in a $1.25 billion deal with Vista Equity
Nickie Louise
Posted On April 8, 2024
In the technology sector’s latest mega buyout deal, Healthcare IT company Model N announced on Monday it has agreed to be taken private in a $1.25 billion deal with investment heavyweight Vista Equity Partners. The deal, immediately sparked investor interest, pushing Model N’s shares up by 9.3% to $29.60 in premarket trading.
According to the agreement terms, Vista Equity Partners will purchase all outstanding shares of Model N at $30 per share, offering a premium of 10.7% over the company’s last closing price, Reuters reported.
Model N is renowned for its revenue management software tailored for the life sciences and high-tech sectors. Its client roster includes big names such as Johnson & Johnson, AstraZeneca, and Microchip Technology, among others.
This acquisition marks Vista’s fifth take-private deal in the past 18 months. Notable acquisitions in Vista’s recent spree include EngageSmart for $4 billion, Duck Creek Technologies for $2.60 billion, and Avalara for a hefty $8.40 billion, all since October 2022.
Late last year, Vista Equity Partners acquired EngageSmart for approximately $4 billion to bolster its presence in the cloud-based customer engagement software sector. The news of the acquisition comes just a few weeks after General Atlantic announced it was exploring the sale of EngageSmart. The company made its debut on the New York Stock Exchange where it raised $378 million in its initial public offering (IPO).
In 2023, Vista also played a significant role as a seller in two multi-billion dollar transactions. These included the sale of Apptio for $4.60 billion and facilitating Blackstone’s acquisition of Cvent for the same impressive sum.
With Model N set to transition into the private realm under Vista’s wing, the healthcare IT landscape braces for potential shifts, marking yet another chapter in the ongoing saga of tech acquisitions. Vista Equity Partners is a well-known private equity firm with a strong focus on investing in enterprise software companies.
