12:23 PM EDT, 09/24/2024 (MT Newswires) -- Smartsheet ( SMAR ) agreed to be acquired and taken private by Blackstone (BX) and Vista Equity Partners in a deal that values the workplace management software company at about $8.4 billion.

Shareholders of Smartsheet ( SMAR ) will receive $56.50 per share in cash, reflecting a 41% premium to the company's weighted average price for 90 trading days ended July 17, the last day before media speculation surfaced about a potential sale. Shares of the firm increased 6.6% in midday trading.

The deal, which requires clearance from regulators and approval from Smartsheet's ( SMAR ) investors, is expected to complete in the company's fiscal fourth quarter ending Jan. 31.

"Our next phase of growth and customer success is underway, and we look forward to partnering with Blackstone and Vista Equity Partners to accelerate our vision of modernizing work management for enterprises, globally," Smartsheet ( SMAR ) Chief Executive Mark Mader said in a statement.

The firm will no longer trade publicly once the deal completes, but will continue to operate under the Smartsheet ( SMAR ) name. The transaction includes a "go-shop" period expiring Nov. 8, allowing Smartsheet ( SMAR ) to accept a superior acquisition proposal, according to the statement.

"We believe that due to numerous media reports indicating a potential buyout offer for (Smartsheet ( SMAR )) over the past couple months, we assume if other parties were interested they would have likely come forward before today's confirming buyout news," Truist Securities said in a Tuesday client note. "Thus, we assume this is the best and final offer that could be forthcoming."

Earlier in the month, Smartsheet ( SMAR ) reported fiscal second-quarter adjusted earnings of $0.44 per share, up from $0.16 the year before. Revenue advanced 17% to $276.4 million. At the time, the company said it expects fiscal 2025 adjusted EPS to be in a range of $1.36 to $1.39 and revenue between $1.116 billion and $1.121 billion.

"We are excited to partner with Smartsheet's ( SMAR ) management team to drive long-term growth by leveraging our and our partner Vista's combined scale and resources to accelerate investments in the next generation of work management solutions," Blackstone's global co-head of technology investing, Martin Brand and senior managing director, Sachin Bavishi said.

Vista aims to support Smartsheet's ( SMAR ) "ambitious goal" of making its platform accessible more broadly, said Monti Saroya, senior managing director at Vista, and John Stalder, managing director.

Price: 55.52, Change: +3.43, Percent Change: +6.58