Model N, a platform used by companies including Johnson & Johnson, AstraZeneca and AMD to automate decisions related to pricing, incentives and compliance, is going private in a $1.25 billion deal dollars.
Vista Equity Partners is paying out $30 per share in the all-cash deal, representing a 12% premium to Friday’s closing price and 16% to its 30-day average.
Founded in 1999, Model N software integrates with various data sources and internal systems to help businesses analyze trends, pricing efficiency, market demand, and more. The platform is typically used in industries such as pharmaceuticals and life sciences, where pricing structures can be complex and regulatory or market changes can impact the business.
The San Mateo-based company went public on the New York Stock Exchange (NYSE) in 2013, and the company has generally performed well over the intervening years, particularly since around 2019, when its market capitalization began to steadily increase, reaching an all-time high of 1. $6 billion last year. However, its valuation has generally remained below $1 billion in the market over the past six months, prompting Vista Equity Partners to take action today.
This is the fifth such acquisition by Vista Equity Partners in the past 18 months, following Avalara ($8.4 billion); KnowBe4 ($4.6 billion); Duck Creek Technologies ($2.6 billion); and EngageSmart ($4 billion).
Vista said it expects the transaction to be completed in mid-2024, although it is of course subject to customary conditions, including shareholder approval.
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