Exclusive-Vista, Blackstone nearing $8-billion deal to buy Smartsheet, sources say

By Milana Vinn and Mike Spector

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

The private-equity firms are discussing an offer of around $56 per share for Smartsheet, the sources said, adding that the deal could be signed in the coming weeks assuming there are no last-minute snags.

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

Vista and Blackstone have been in talks with direct lenders to raise financing for the takeover, the sources said, cautioning 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 largest take-private transactions of the year and come at a time when the market is anticipating that the U.S. Federal Reserve will start cutting interest rates, which could trigger a jump in leveraged-buyout activity.

Silver Lake's $13-billion buyout of talent agency Endeavor Group is the biggest take-private deal so far this year, according to LSEG data.

Smartsheet's software allows organizations to manage, track and automate their workflow using a single platform, offering more features and capabilities than Microsoft's Excel.

It focuses on big corporate clients that have complex operations, such as Pfizer, Cisco and American Airlines, serving 85% of Fortune 500 companies, according to its website. Some of its competitors offering similar products, like Asana and Monday.com, target smaller companies.

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

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

(Reporting by Milana Vinn and Mike Spector in New York; Editing by Anirban Sen and Rod Nickel)