Vista and Blackstone buy software manufacturer Smartsheet for around $8.4 billion

Private equity firms Vista Equity Partners and Blackstone are buying software maker Smartsheet for around $8.4 billion in cash.

Vista and Blackstone said Tuesday they will pay $56.50 per Smartsheet Inc. share. The agreement includes a 45-day “go-shop” period during which Smartsheet and its advisers will solicit alternative tender offers from certain third parties and may enter into discussions with other parties making alternative offers. Smartsheet's board of directors has the right to terminate the deal with Vista and Blackstone to accept a better offer. The go-shop period ends on Nov. 8.

“We look forward to working closely with Blackstone and Smartsheet to support their ambitious goal of making the platform accessible to every organization, team and employee who relies on collaboration to achieve successful outcomes,” said Monti Saroya, co-head of Vista's Flagship Fund and senior managing director, and John Stalder, managing director at Vista, in a statement.

The announcement came shortly after the Federal Reserve said it would cut its benchmark interest rate by an unusually large half a percentage point. The central bank's move brought the benchmark interest rate down to around 4.8 percent, from a 20-year high of 5.3 percent. A rate cut provides more favorable terms for companies considering acquisitions.

The deal, which was approved by Smartsheet's board of directors, is expected to close in the fiscal fourth quarter and is subject to approval by Smartsheet shareholders.

Once the transaction is completed, Smartsheet will be taken private. The Bellevue, Washington-based company will continue to operate under the Smartsheet name and brand.

Shares rose more than 6% in morning trading.