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Key Points
- Smartsheet shareholders will receive $56.50 per share in cash, representing an 8.5% premium over the company's closing price prior to the announcement. The deal includes a 45-day "go-shop" period, allowing Smartsheet to consider alternative proposals.
- The acquisition aims to leverage Blackstone and Vista's resources to accelerate Smartsheet's growth and innovation in the work management software market.
- Upon completion, Smartsheet will become a privately held company, delisting from public markets, and continuing operations under its established brand.
In a major move within the enterprise software industry, Blackstone, the largest alternative asset manager globally, and Vista Equity Partners, a leading technology investment firm founded by billionaire Robert F. Smith, have announced their $8.4 billion acquisition of Smartsheet, a work management platform. This acquisition highlights the rising demand for productivity tools that support global enterprise collaboration.
Boosting enterprise collaboration through Smartsheet
Smartsheet has become a leading solution for organizations aiming to streamline workflows and enhance team collaboration, with over 85 percent of Fortune 500 companies utilizing its platform. The acquisition by Blackstone and Vista Equity Partners promises Smartsheet the capital and strategic backing to broaden its service offerings. Mark Mader, CEO of Smartsheet, expressed enthusiasm for the partnership, noting, “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.”
Private equity’s expanding role in tech
The acquisition underscores private equity’s growing interest in the technology sector. Both Blackstone and Vista Equity Partners, with extensive experience in tech investments, aim to leverage their expertise to drive Smartsheet’s growth. Martin Brand of Blackstone stated, “We are excited to partner with Smartsheet’s management team to drive long-term growth by leveraging our and Vista’s combined scale and resources to accelerate investments in the next generation of work management solutions.” Vista Equity, under Robert F. Smith’s leadership, has a track record of high-impact tech investments, including prior collaborations with Blackstone in major acquisitions.
Outlook for Smartsheet’s future
As Smartsheet transitions to private ownership, Blackstone and Vista plan to focus on enhancing the platform, driving innovation, and expanding market presence. This support aims to strengthen Smartsheet’s role as a leader in work management software, fostering improved customer experiences. The acquisition also reflects a broader trend of private equity interest in digital collaboration tools, fueled by the needs of a remote, distributed workforce. Industry stakeholders will be watching closely to see how this partnership influences Smartsheet’s growth and the enterprise software market.
