Vista Equity Partners and Blackstone are reportedly in advanced negotiations to acquire Smartsheet in a deal potentially valued at close to $8 billion, sources familiar with the matter disclosed on Monday. The buyout firms are discussing an offer of approximately $56 per share for the collaboration-software company, with a deal expected to be finalized in the coming weeks, barring any unforeseen issues.
According to sources, Vista and Blackstone are currently working with direct lenders to secure financing for the acquisition. The terms of the deal could still evolve as negotiations continue. The discussions were first reported by Reuters earlier this month, and Smartsheet’s stock has risen over 16% since the initial news, reflecting heightened market interest.
If completed, this transaction would rank among the largest take-private deals of the year. The deal comes as market expectations grow that the U.S. Federal Reserve may soon lower interest rates, which could spur increased activity in leveraged buyouts.
So far this year, the largest take-private transaction has been Silver Lake’s $13 billion acquisition of talent agency Endeavor Group, according to LSEG data.
Smartsheet, known for its collaboration software that facilitates workflow management, tracking, and automation, serves a wide range of large corporate clients, including Pfizer, Cisco, and American Airlines. The company’s platform competes with tools like Asana and Monday.com, but focuses on complex, large-scale operations. Smartsheet’s recent second-quarter earnings report exceeded market expectations, bolstered by strong growth from new enterprise clients.
“Smartsheet is effectively navigating the tough macro environment, and we still believe the company will gain traction with its new pricing strategy and product improvements,” Morningstar analysts commented in a September 6 note.
As Vista and Blackstone advance with their acquisition plans, the outcome of this high-profile deal remains closely watched by industry observers and market participants.
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