×

Subscribe Today

Get our free articles delivered directly to your email!

Continue reading

Vista Equity Partners Acquires Model N for $1.25 billion in Cash

  • April 8, 2024

 

MODN Merger

Healthcare IT firm Model N Inc (MODN) on April 8, entered into an agreement with investment firm Vista Equity Partners for an all cash deal valued at $1.25 billion.

Vista Equity will acquire all the outstanding shares of Model N common stock for $30.00 per share, according to the terms of the agreement, representing a premium of 10.74% to the company’s last close.

Model N, which provides revenue management software for pharmaceutical, medtech and high-tech industries, is expected to pay $43.17 million to Vista Equity in the event of termination of the merger agreement.

Pharmaceutical companies like Johnson & Johnson and AstraZeneca, and semiconductor manufacturers like Broadcom, and Microchip Technology are among the customers of the healthcare IT firm.

With the outside date set as October 4, 2024 for the agreement, Model N has sought financial advice from Jefferies, while Fenwick & West are serving as their legal advisor. On the other hand, Kirkland & Ellis are acting as the legal counsel for Vista Equity Partners.

This merger follows a string of acquisitions by Vista Equity. Since October 2022, the investment firm has acquired Avalara, Inc., KnowBe4, Inc., Duck Creek Technologies, and EngageSmart, Inc. (ESMT).

The acquisition price amounts to 4.10 times the sales of Model N Inc. and 223.39 times EBITDA. Model N stock has both put and call options but options volume before this deal was announced was quite low.

Please refer to the following link for more in-depth details about the deal metrics:

Deal Metrics for the acquisition of Model N Inc. (MODN) by Vista Equity Partners.

Disclaimer: This article is meant to be informational and does not serve as financial advice. Please conduct your own due diligence before buying or selling any securities mentioned in this article. We do not guarantee the completeness or accuracy of the content or data provided in this article.