04:45 PM EDT, 04/15/2024 (MT Newswires) -- Model N ( MODN ) is being urged by ClearBridge Investments to reconsider its April 8 decision to be acquired by Vista Equity Partners for $1.25 billion in cash as buyout offer "materially undervalues" the software company.

In a letter Monday to Model N ( MODN ) board chairman Baljit Dail, ClearBridge portfolio managers Jeffrey Bailin and Aram Green said other potential acquirers may be willing to pay more, given its improved operations and recent multiples paid for other industry acquisitions.

"Continuing to execute on the company's mid-term targets should offer much higher value for patient shareholders who have endured relative under-performance on a trailing 12-month and trailing 36-month basis," Bailin and Green said in their letter.

ClearBridge owned about 7% of Model N ( MODN ) stock as of Dec. 31.

Model N ( MODN ) and Vista disclosed Vista's offer of $30 per share, representing a 16% premium to Model N ( MODN ) shares. The deal is expected to close by mid-year, subject to shareholder and regulatory approval and other customary closing conditions.