Blackstone and Vista Equity Partners to acquire software maker Smartsheet for $8.4 billion

Collaboration software maker Smartsheet on Tuesday announced Blackstone and Vista Equity Partners will acquire it in an all-cash deal valuing the company at about $8.4 billion.

Stockholders will receive $56.50 per share, a 41% premium to Smartsheet's average closing price over the last three months.

The company had been gauging interest from potential acquirers for several months. Smartsheet went public in 2018 and sought to go head-to-head with other software companies like Atlassian.

"As we look to the future, we are confident that Blackstone and Vista's expertise and resources will help us ensure Smartsheet remains a great place to work where our employees thrive," CEO Mark Mader said in a release. Smartsheet shares rose 6% on the news.

The transaction has a 45-day go-shop period, allowing Smartsheet to solicit other bidders. Barring another offer, the deal is expected to close by January 2025, pending shareholder approval.

Qatalyst advised Smartsheet. Goldman Sachs and Morgan Stanley advised the private equity bidders.