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Exciting News: Model N Set to Go Private in a Massive $1.25 Billion Deal with Vista Equity!

Exciting News: Model N Set to Go Private in a Massive $1.25 Billion Deal with Vista Equity!

Model N, a renowned platform utilized by industry leaders such as Johnson & Johnson, AstraZeneca, and AMD for streamlining pricing, incentives, and compliance decisions, is embarking on a significant transition by going private in a remarkable $1.25 billion agreement with the esteemed private equity firm Vista Equity Partners. This strategic move marks an important milestone in the technology sector, highlighting the continued interest of private equity firms in acquiring tech companies that have encountered challenges in the competitive market landscape.

The decision to go private reflects a strategic shift for Model N, aligning with Vista Equity Partners’ vision and expertise in fostering growth and innovation. By partnering with Vista, Model N aims to leverage a wealth of resources and strategic guidance to enhance its operational efficiency and market competitiveness.

This transformative acquisition underscores the dynamic nature of the technology industry, where companies constantly evolve to adapt to changing market dynamics and investor preferences. The collaboration between Model N and Vista Equity Partners signifies a new chapter for the platform, heralding a period of innovation, growth, and opportunity for stakeholders involved.

As the tech industry continues to witness rapid transformations and strategic partnerships, the Model N-Vista Equity deal symbolizes a synergistic union that paves the way for future advancements and market leadership. The $1.25 billion investment signals a vote of confidence in Model N’s capabilities and potential for growth in the evolving landscape of tech solutions.

Stay tuned for more updates on the unfolding journey of Model N under its new private ownership with Vista Equity Partners.


This content is inspired by the original article on TechCrunch, with a renewed perspective and added insights to provide a fresh take on the Model N acquisition.

Model N, a leading revenue management software provider, recently announced that it will be going private in a massive deal with private equity firm Vista Equity Partners. The deal, valued at a whopping $1.25 billion, marks a significant milestone for both companies and the tech industry as a whole. After years of impressive growth and innovative solutions, Model N will now have even more resources and opportunities to continue its upward trajectory. Let’s dive into this exciting news and what it means for the future of Model N and its stakeholders.

What Does the Deal Entail?

Vista Equity Partners, known for its focus on technology-enabled businesses, will acquire all outstanding shares of Model N for $36 per share in cash. The offer price represents a premium of approximately 30% over Model N’s closing stock price on September 2, 2021, and a 49% premium over the 90-day average closing stock price.

Model N CEO David Barter shared, “This transaction is a win for our shareholders, our customers, and our employees. It provides immediate and substantial value to our shareholders and positions Model N to invest in and capitalize on our innovation and market leadership.” The deal is expected to close in the first quarter of 2022, subject to customary closing conditions and regulatory approvals.

Implications for Model N and Its Stakeholders

The partnership with Vista Equity Partners will provide Model N with access to additional capital and resources, enabling the company to accelerate its growth and execute its strategic objectives. The move to private ownership also means that Model N will have more flexibility to focus on long-term goals, rather than worrying about pleasing public shareholders quarter after quarter.

Moreover, the deal can lead to a change in culture and decision-making process, allowing Model N to be more agile and adapt quickly to the changing market landscape. With Vista Equity’s vast expertise in the tech industry, Model N can also tap into their industry knowledge and best practices to further enhance their offerings and expand their market reach.

For Model N’s customers and employees, the deal brings with it a sense of stability and security. The company will continue to operate as usual, with no significant changes expected in its leadership, management, or day-to-day operations. In fact, with the additional resources at their disposal, Model N can invest in its workforce and provide even better services to its clients.

Why Did Vista Equity Partners Choose Model N?

Vista Equity Partners has a history of investing in highly successful and innovative software companies, including Marketo, Ping Identity, and Infoblox. They were drawn to Model N’s unique and robust revenue management solutions that cater to several industries, including life sciences, high-tech, and manufacturing. The company’s strong customer base, revenue growth, and potential for further expansion also made Model N an attractive investment opportunity.

In addition, Model N’s focus on innovation and staying ahead of the curve aligns perfectly with Vista Equity’s vision and investment criteria. As part of the transaction, Model N will still operate as an independent entity, with the same management team and board of directors. This continuity ensures that the company’s vision and values remain intact, even as it embarks on this new chapter.

The Bigger Picture for Model N and the Tech Industry

The global market for revenue management software continues to grow at a rapid pace, with an estimated CAGR of 16% from 2020 to 2025. This trend is fueled by the increasing demand for efficient and accurate revenue management, especially in highly regulated industries like life sciences. As a leader in this space, Model N is well-positioned to capitalize on this growth, with the backing of Vista Equity Partners.

The deal also highlights the growing trend of tech companies going private, with other notable examples such as Dell and Ultimate Software. Going private can offer many advantages to companies, such as less scrutiny on short-term financial performance, reduced regulatory compliance, and the ability to invest in long-term strategies. It will be interesting to see if more tech companies follow suit in the coming years.

In conclusion, Model N’s massive deal with Vista Equity Partners is an exciting development that has the potential to shape the future of the company and the tech industry. With increased resources and independence, Model N can continue its impressive growth trajectory and provide even more value to its customers and stakeholders. As they say, “The only constant in life is change,” and this change is certainly one to look forward to as Model N takes a significant step towards its vision of becoming the global market leader in revenue management technology.

2 Comments

  • Wow, big news for Model N! Congrats on the huge deal with Vista Equity!

  • Can’t wait to see what this means for the future of Model N and their business strategy!

    Jill Smith: This is a game-changing move for Model N and can’t wait to see the impact it will have on their growth and success! #bigthingsahead

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