The Acquisition Announcement
Model N, Inc. MODN shares are trading higher after the
company announced Vista Equity Partners will acquire it for $1.25 billion.
As per the terms, Vista will acquire all the outstanding shares of Model N for
$30.00 per share, representing a premium of around 23% over Model N’s 30-trading-day volume weighted
average share price as of the close on January 10, 2024, the day before the Model N Board of Directors
authorized its financial advisor to contact potential acquirers.
The Investor Perspective
The purchase price also represents a premium of about 16% over Model N’s
30-trading-day volume weighted average share price as of the close on April 5, 2024.
The transaction is expected to close in mid-2024, subject to customary closing
conditions.
The Future of Model N
After the deal, Model N will become a privately held company and no longer be
listed in any public market.
Jason Blessing, Model N President and Chief Executive Officer, said, “As a
private company under Vista’s ownership, we will have the added resources to navigate this dynamic
market and drive ARR growth for the long term. Vista understands our strengths, culture, and
customer-centric philosophy as we position our company to capture market opportunities and accelerate
our global impact.”
The Market Impact
Nick Prickel, Senior Vice President at Vista, stated, “Model N enables leading
life science and advanced technology companies to optimize their commercialization and compliance
processes with mission-critical products specifically designed to address the complexities of these
dynamic markets.”
Investors can gain exposure to the stock via SPDR S&P Software &
Services ETF XSW and First Trust Multi-Manager Small Cap Opportunities
ETF MMSC.
The Surging Shares
Price Action: MODN shares are up 10.13% at $29.83 on the last
check Monday.
