Model N signs $1.25 billion go-private deal with Vista Equity

(Reuters) – Healthcare IT firm Model N said on Monday it has entered into an agreement to be taken private by investment firm Vista Equity Partners for about $1.25 billion, sending its shares up 9.3% at $29.60 in premarket trading.

Vista will acquire all the outstanding shares of Model N for $30 per share, according to the terms of the agreement, representing a premium of 10.7% to the company’s last close.

Model N provides revenue management software to the life sciences and high-tech industries.

Its customers comprise pharmaceutical companies, semiconductor manufacturers and medical device makers including Johnson & Johnson, AstraZeneca and Microchip Technology.

This would be Vista’s fifth take-private transaction in the last 18 months. Since October 2022, Vista has acquired EngageSmart for $4 billion, Duck Creek Technologies for $2.60 billion and Avalara for $8.40 billion.

In 2023, Vista was also the seller in two multi-billion dollar transactions – IBM’s acquisition of Apptio for $4.60 billion and Blackstone’s acquisition of Cvent for $4.60 billion.

(Reporting by Sneha S K in Bengaluru and Anirban Sen in New York; Editing by Shounak Dasgupta and Vijay Kishore)