Wed Sep 25 07:57:39 UTC 2024: ## Smartsheet Acquired for $8.4 Billion, Stock Rating Downgraded
**San Francisco, CA** – Work management platform Smartsheet Inc. (NYSE:SMAR) has been acquired by private equity firms Blackstone (NYSE:BX) and Vista Equity in an all-cash transaction valued at $8.4 billion. The deal, which sees Smartsheet transitioning from a publicly traded company to a privately held one, has prompted investment firm William Blair to downgrade its stock rating from Outperform to Market Perform.
The acquisition price of $56.50 per share represents an 8.5% increase over Monday’s closing price and a 41% premium over the 90-day average share price prior to acquisition rumors surfacing. This valuation translates to 6.3 times Smartsheet’s projected 2025 revenue and 28.8 times its estimated 2025 free cash flow.
The acquisition multiples align with recent industry trends, with similar deals like New Relic (NYSE:NEWR) and Cvent being acquired at 6.3 and 6.2 times revenue respectively. This suggests that Smartsheet’s acquisition price is reasonable given current market conditions for companies with comparable growth rates.
William Blair’s rating downgrade reflects the immediate impact of the acquisition agreement and the subsequent shift in Smartsheet’s investment profile. As the company moves into private ownership, the investment landscape changes for shareholders.
First Piper 