Model N (NYSE: MODN), a revenue optimization and compliance for innovative sectors such as pharmaceuticals, medtech, and high-tech, announced today its definitive agreement to be acquired by Vista Equity Partners, a prominent investment firm focused on enterprise software and technology-enabled businesses.
Under the agreement, Vista will purchase all outstanding shares of Model N common stock at $30.00 per share, an all-cash transaction valued at roughly $1.25 billion.
This acquisition price is a 23% premium over Model N’s 30-day volume-weighted average price as of January 10, 2024, and a 16% premium as of April 5, 2024.
Baljit Dail, Chairman of the Model N Board, stated that this agreement follows a thorough sale process and offers significant and immediate value to shareholders, especially considering the challenges of remaining a standalone public entity.
Jason Blessing, President and CEO of Model N, emphasized the enhanced ability to drive long-term ARR growth and tackle market dynamics effectively as a private entity under Vista’s stewardship.
Vista’s Co-Head, Michael Fosnaugh, and Senior Vice President, Nick Prickel, both praised Model N’s pivotal role and future potential in enhancing revenue management for life sciences and technology sectors.
The transaction is set to close in mid-2024, pending approval by Model N stockholders and regulatory clearances, including the Hart-Scott-Rodino Antitrust Improvements Act.
Post-acquisition, Model N will transition to a private company, and its shares will be delisted from public trading.
Jefferies LLC is serving as Model N’s financial advisor, with Fenwick & West LLP as legal counsel. Vista’s legal counsel is Kirkland & Ellis LLP.
Model N, headquartered in San Francisco, is renowned for its cloud solutions that automate and scale pricing, incentives, and contract management.
Trusted by global leaders like Johnson & Johnson and Broadcom, Model N supports over 120 countries in optimizing business processes.
Vista, managing over $101 billion in assets, invests in companies that are at the forefront of technological innovation, aiming to create sustainable market value.
PEVCJournal.com