Vista Equity Partners to Privatize Revenue Optimization Platform Model N in $1.25B Deal

Model N, a platform utilized by major companies like Johnson & Johnson, AstraZeneca, and AMD to automate pricing, incentives, and compliance decisions, is transitioning to private ownership in a $1.25 billion deal with private equity firm Vista Equity Partners. This move highlights the trend of private equity firms acquiring tech companies that have faced challenges in public markets over the past few years.

Under the terms of the agreement, Vista Equity will pay $30 per share in an all-cash transaction, representing a 12% premium over Friday’s closing price and a 16% premium over its 30-day average.

This marks Vista Equity’s fifth acquisition in the last 18 months, following deals with Avalara ($8.4 billion), KnowBe4 ($4.6 billion), Duck Creek Technologies ($2.6 billion), and EngageSmart ($4 billion).

Established in 1999, Model N’s software integrates with diverse data sources and internal systems to enable companies to analyze pricing trends, market demand, and pricing effectiveness. The platform is particularly prevalent in industries such as pharmaceuticals and life sciences, where intricate pricing structures and regulatory changes can significantly impact operations.

Headquartered in San Mateo, Model N went public on the New York Stock Exchange (NYSE) in 2013 and has generally performed well over the years, with its market cap steadily rising, reaching an all-time high of $1.6 billion last year. However, its valuation has remained below the $1 billion mark for the past six months, prompting Vista Equity Partners’ recent move.

Vista expects the transaction to be finalized by mid-2024, subject to customary conditions, including shareholder approval.