BELLEVUE, WA – Smartsheet Inc . (NYSE:SMAR), a $7.8 billion market cap leader in prepackaged software services, announced today that its shareholders have approved a merger agreement with Einstein Parent, Inc. and its subsidiary, Einstein Merger Sub, Inc.
The company's stock has shown strong momentum, gaining over 26% in the past six months, according to InvestingPro data. This approval signifies a critical step toward finalizing the merger, which is anticipated to close in the fourth quarter of Smartsheet's fiscal year ending January 31, 2025.
The special shareholder meeting, held virtually on Monday, saw a strong turnout with approximately 75.8% of outstanding shares represented. InvestingPro analysis shows Smartsheet maintaining impressive gross profit margins of 81.7% and achieving 18.5% year-over-year revenue growth.
The merger proposal received overwhelming support, with over 100 million votes in favor, significantly outnumbering the 5 million votes against. A separate proposal regarding executive compensation related to the merger also passed, albeit with a narrower margin.
Under the terms of the September 24, 2024, merger agreement, Smartsheet will survive as a wholly owned subsidiary of Parent company, Einstein Parent, Inc. The approval of the merger by Smartsheet’s shareholders satisfies one of the conditions for the completion of the merger. However, the transaction is still subject to other customary closing conditions, including regulatory approvals.
Today's vote marks a significant milestone in Smartsheet's corporate trajectory and sets the stage for the upcoming integration with Einstein Parent, Inc. This information is based on a press release statement. For deeper insights into Smartsheet's financial health and comprehensive analysis, investors can access the detailed Pro Research Report available on InvestingPro, which covers over 1,400 top US stocks.
In other recent news, Smartsheet Inc. experienced a significant revenue increase of 17% year-over-year in the third quarter, reaching $286.9 million and 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.
Despite a few challenges such as missing billing expectations and a slight decrease in annual recurring revenue (ARR), the company demonstrated strong margin performance, beating EBIT projections by $13 million.
Citi, after reviewing these developments, 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 (NYSE:BX) is likely to proceed.
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