Exclusive-Vista, Blackstone is nearing an $8 billion deal to buy Smartsheet, sources say By Reuters

By Milana Vinn and Mike Spector

NEW YORK (Reuters) – Buyout firms Vista Equity Partners and Blackstone (NYSE: ) are in advanced talks to acquire Smartsheet (NYSE: ) in a deal that could value the collaboration software maker at nearly $8 billion, people familiar with the matter said Monday.

Private equity firms are discussing an offer of about $56 a share for Smartsheet, the sources said, adding that the deal could be signed in the coming weeks, assuming there are no last-minute issues.

Reuters was the first to report this month that Vista and Blackstone were in talks to acquire Smartsheet. Its shares have risen more than 16 percent since Reuters reported in July that the company was fielding interest from potential buyers.

Vista and Blackstone have been in talks with direct lenders to secure financing for the takeover, the sources said, warning that terms could change as talks progress.

Vista and Smartsheet did not immediately respond to requests for comment. Blackstone declined to comment.

If the talks are successful, the deal would rank as one of the biggest private deals of the year and come at a time when the market expects the US Federal Reserve to start cutting interest rates, which could trigger a increasing leverage. – purchase activity.

Silver Lake’s $13 billion purchase of talent agency Endeavor Group is the largest private transaction so far this year, according to LSEG data.

Smartsheet software enables organizations to manage, track and automate their workflow using a single platform, offering more features and capabilities than Microsoft’s (NASDAQ:) Excel.

It focuses on large corporate customers who have complex operations such as Pfizer (NYSE: ), Cisco (NASDAQ: ) and American Airlines (NASDAQ: ), serving 85 percent of Fortune 500 companies, according to its website. Some of its competitors that offer similar products, such as Asana and Monday.com, target smaller companies.

Smartsheet reported second-quarter earnings this month that beat market expectations, driven by robust order growth from new enterprise customers.

“Smartsheet is effectively navigating the challenging macro environment, and we still believe the company will gain traction with its new pricing strategy and product enhancements,” Morningstar analysts wrote in a Sept. 6 note.