Smartsheet to be acquired by Blackstone and Vista Equity Partners for $8.4 billion.

• An $8.4 billion deal has been struck for the acquisition of Smartsheet by Blackstone and Vista Equity Partners.
• The all-cash bid will result in shareholders receiving $56.50 per share, which represents a 41% increase above the company's average share price.
• In 2018, the collaboration software company joined a group of enterprise software companies, including DocuSign, in going public.

On Tuesday, collaboration software maker announced an all-cash deal with Blackstone and Vista Equity Partners, valuing the company at $8.4 billion.

Smartsheet's stockholders will receive a 41% premium of $56.50 per share, which is above their average closing price over the past three months.

The company had been considering potential acquirers for several months, according to other reports. The company went public in 2018 and aimed to compete with other software companies like Atlassian.

Mark Mader, CEO of Smartsheet, stated in a release that he is confident that Blackstone and Vista's expertise and resources will help ensure Smartsheet remains a great place to work where employees thrive. As a result, shares rose 6% on the news.

The go-shop period for the transaction is 45 days, giving Smartsheet the opportunity to seek other bidders. If no other offers are received, the transaction is expected to close by January 2025, pending shareholder approval.

Smartsheet was advised by Qatalyst, while Goldman Sachs and Morgan Stanley advised the private equity bidders.