Smartsheet (NYSE: SMAR) is a smart buy because of its growth, operational quality, cash flow, and capital return. That's why private equity firms are in talks to buy it; they see deep value in the business and its stock. The takeaway is that Smartsheet will either get taken over at a premium to today's prices or won't. If it does, investors stand to make a quick 10%, and the gains will be greater if it doesn't.
What is Smartsheet? It is a cloud-based SaaS firm focused on workflow and project management. Clients include nearly 85% of the Fortune 500 and 90% of the Fortune 100, statistics which prove its utility for business. Firms looking to take over the business include a partnership between Vista Equity and Blackstone (NYSE: BX), which are reported to be nearing finalization on an agreement worth $8 billion. If completed, it would be among the largest takeovers of the year. The $8 billion target price works out to about $56 per share or a nearly 10% premium to the market cap, with shares trading near $52.50.
Smartsheet Is Growing and Monetizes AI Today
Smartsheet reported a solid Q2 and gave guidance indicating strengths will continue through the year's end. Revenue growth is slowing, but the $276.6 ...
