San Luis Obispo-based software company Mindbody announced Monday it has entered into a merger deal in which it will sell to a private equity firm for $1.9 billion.
Mindbody is a publicly traded company that sells software for managing health and wellness businesses. San Francisco-based Vista Equity Partners, an investment firm focused on software, data and technology-enabled business, has agreed to purchase Mindbody, according to a jointly issued news release.
Vista will acquire all outstanding shares of Mindbody common stock for approximately $1.9 billion. Mindbody shareholders will receive $36.50 per share in cash, amounting to a 68 percent premium from Friday’s closing price of $21.72.
“Mindbody’s purpose is to help people lead healthier, happier lives by connecting the world to fitness, beauty and wellness,” Mindbody co-founder and CEO Rick Stollmeyer said in a statement. “We are thrilled to provide immediate liquidity to our shareholders at a significant premium to market prices and to leverage Vista’s resources and deep expertise to accelerate our growth while achieving that purpose more effectively than ever before.”
Brian Sheth, the co-founder and president of Vista, said in a statement that Mindbody is the leading technology platform for the fitness, wellness and beauty industries and is an ideal fit for Vista’s family of companies.
“We look forward to partnering with Rick and the entire Mindbody team to deliver innovation to customers that will help grow their business and to consumers who depend on Mindbody to strengthen their health and wellbeing,” Sheth said.
Mindbody’s board of directors has unanimously approved the deal and recommended that stockholders vote their shares in favor of the transaction. The sale is expected to close in the first quarter of 2019, but it is subject to customary closing conditions, including the approval of Mindbody shareholders and United States antitrust approval.
Likewise, the sale agreement includes a 30-day “go-shop” period, in which Mindbody’s board of directors and financial advisors can solicit, encourage and potentially enter negotiations with other parties that make alternative acquisition offers. Mindbody will have the right to terminate the merger agreement with Vista in order to enter into a better deal.