10:13 AM EDT, 04/08/2024 (MT Newswires) -- Model N ( MODN ) is set to be taken private by Vista Equity Partners in an all-cash deal announced Monday that values the software company at about $1.25 billion.

The investment firm will pay $30 a share for the entire stock of Model N ( MODN ), marking a roughly 16% premium to the company's 30-day average share price as of Friday. Shares of Model N ( MODN ) gained 11% in early trading.

"We are pleased to have reached this agreement with Vista, which is the culmination of a robust sale process led by our board of directors with the assistance of our financial and legal advisors," Chairman Baljit Dail said in a statement. In January, the company authorized its financial adviser to contact potential acquirers.

The deal, which requires antitrust approval as well as clearance from Model N's ( MODN ) shareholders, is expected to close in the middle of this year. When it's complete, the company won't be listed on a public stock exchange.

"As the board considered the long-term path for Model N ( MODN ), we unanimously determined that the transaction with Vista represents the best opportunity to deliver compelling, certain, and immediate cash value to our stockholders and is in their best interest in light of the challenges faced by Model N ( MODN ) as a standalone public company," Dail said.

Model N ( MODN ) provides cloud-based revenue management solutions for the pharmaceutical and life sciences industries. The acquisition will give the company access to resources and will drive long-term annual recurring revenue growth, Chief Executive Jason Blessing said in the statement.

In February, the company reported fiscal first-quarter adjusted earnings of $0.28 per share, up from $0.22 the year before, just shy of the Capital IQ-polled consensus of $0.29. Revenue increased 7% to $63.5 million, topping the Street's view for $62.2 million. For fiscal 2024, it anticipates adjusted EPS to be in a range of $1.25 to $1.32 with revenue of $260.5 million to $263.5 million.

"Model N ( MODN ) enables leading life science and advanced technology companies to optimize their commercialization and compliance processes," Vista Senior Vice President Nick Prickel said. "We look forward to working closely with the Model N ( MODN ) team as they embark on this exciting next chapter."

Price: 30.00, Change: +2.91, Percent Change: +10.73