BELLEVUE, Wash. - Smartsheet, known for its AI-enhanced work management platform and impressive 81.68% gross profit margins, has finalized its acquisition by investment firms Blackstone (NYSE:BX) and Vista Equity Partners. The deal, valued at approximately $8.4 billion, was first announced on September 24, 2024, and received approval from Smartsheet's stockholders on December 9, 2024. According to InvestingPro data, the company demonstrated strong revenue growth of 18.55% in the last twelve months.
Following the transaction's closure, Smartsheet's shares have been withdrawn from the New York Stock Exchange, with former shareholders receiving $56.50 per share in cash, near the stock's 52-week high of $56.55. This marks the end of Smartsheet's public trading and the beginning of its journey as a privately-held entity. Prior to the acquisition, InvestingPro analysis showed the company maintained a strong financial health rating of GOOD, with more cash than debt on its balance sheet.
Mark Mader, President and CEO of Smartsheet, expressed optimism about the company's future, highlighting the potential for growth and innovation with support from Blackstone and Vista. He emphasized the strategic value of collaborative work management and AI-enabled solutions in today's business environment.
Blackstone and Vista have committed to further invest in Smartsheet's platform, aiming to enhance product offerings and expand the company's global presence. Smartsheet is expected to leverage the combined expertise and resources of both firms to scale its international business and improve customer and partner services worldwide.
Sachin Bavishi from Blackstone and Monti Saroya and John Stalder from Vista Equity Partners noted Smartsheet's track record in enabling organizational collaboration and are looking forward to driving product innovation and customer value.
Smartsheet's advisory team included Qatalyst Partners as its exclusive financial advisor and Fenwick & West LLP as legal counsel. Goldman Sachs (NYSE:GS) & Co. LLC, Morgan Stanley (NYSE:MS) & Co. LLC, Kirkland & Ellis LLP, and Simpson Thacher & Bartlett LLP advised Blackstone and Vista.
The company, trusted by a significant portion of Fortune 500 companies and generating over $1 billion in annual revenue, is poised for continued influence in the enterprise work management space. This development is based on a press release statement and financial data from InvestingPro, which offers comprehensive analysis and additional insights through its Pro Research Reports covering 1,400+ top US stocks.
In other recent news, Smartsheet Inc (NYSE:SMAR). reported a significant increase in its third-quarter revenue, which rose by 17% year-over-year to reach $286.9 million, surpassing analyst estimates. The company's adjusted earnings per share also exceeded expectations, standing at $0.43, a notable beat over the consensus forecast of $0.30. Additionally, Smartsheet's annual recurring revenue (ARR) experienced a 15% growth, amounting to $1.133 billion.
Smartsheet shareholders have also approved a merger agreement with Einstein Parent, Inc. and its subsidiary, Einstein Merger Sub, Inc. The approval signifies a critical step towards finalizing the merger, which is anticipated to close in the fourth quarter of Smartsheet's fiscal year. The merger proposal received overwhelming support, with over 100 million votes in favor.
After reviewing these developments, Citi reiterated its Neutral rating on Smartsheet, with minor adjustments to its revenue estimates for the coming years. The firm has also expressed that the proposed acquisition of Smartsheet by Vista Equity Partners and Blackstone is likely to proceed. These are among the recent developments concerning Smartsheet Inc.
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