Blackline Safety has entered into a definitive agreement to be acquired by an affiliate of Francisco Partners, valued at up to $850 million.
Under the terms of the deal, shareholders will receive $9.00 per share in cash at closing, along with a contingent value right of up to $0.50 per share, for a total potential consideration of $9.50 per share. The offer represents a premium of approximately 27% to 34% over the company’s recent trading price and 28% to 35% over its 20-day volume-weighted average price as of April 7, 2026.
The transaction implies a fully diluted equity value of approximately $804 million based solely on the cash portion, and up to $850 million assuming the maximum contingent payout. The contingent value right is tied to the company achieving annualized recurring revenue targets by October 31, 2027, with payments dependent on performance thresholds ranging from $145 million to $148.9 million.
A group of major shareholders, including DAK Capital Inc., the Lowy Family Group, and company leadership, has agreed to roll over a portion of their shares into the acquiring entity, representing approximately 31% of outstanding shares. These rollover shareholders will not receive contingent value rights on most of their shares.
The board of directors unanimously approved the transaction and recommends that shareholders vote in favor. Voting support agreements have already been secured from shareholders representing approximately 34% of outstanding shares.
The deal will be executed through a plan of arrangement and is subject to shareholder, court, and regulatory approvals. A shareholder meeting is expected in June 2026, with closing anticipated in the second quarter. Upon completion, Blackline Safety’s shares will be delisted from the Toronto Stock Exchange, and the company will transition to private ownership.
The agreement includes standard deal protections, including a termination fee of $30.6 million payable by Blackline under certain conditions and a reverse termination fee of $56.3 million payable by the purchaser in specified scenarios.
A formal valuation conducted by CIBC Capital Markets estimated the fair market value of the shares between $8.15 and $11.10 per share, with contingent value rights valued between $0 and $0.40. Financial advisors, including Canaccord Genuity and CIBC Capital Markets, provided fairness opinions supporting the transaction.
Blackline Safety, headquartered in Calgary, provides connected safety devices, gas detection, and cloud-based monitoring solutions for industrial workers across more than 75 countries.
KEY QUOTES
“As Blackline transitions to a private company, this new partnership with Francisco Partners provides the financial strength, sector expertise and shared vision to continue our growth and strengthen our technology leadership. I also want to express how important it is to have Daryl Katz, through DAK Capital, continue his involvement in the company. Daryl is one of Canada’s most successful business leaders and has been a key supporter of our company’s vision throughout this journey. Together, we will advance our mission of protecting workers and saving lives at an even greater pace.”
Cody Slater, Chief Executive Officer and Chair, Blackline Safety
“Blackline has built a leading platform in connected worker safety, combining hardware, software, and data to protect industrial workers in some of the most demanding environments in the world. We look forward to partnering with Cody and the leadership team to continue driving product innovation and expanding Blackline’s reach as demand for connected worker safety technology grows across enterprises worldwide.”
Mac Fountain, Principal, Francisco Partners
“Blackline has built a leading platform in connected worker safety, combining hardware, software, and data to protect industrial workers in some of the most demanding environments in the world. We look forward to partnering with Cody and the leadership team to continue driving product innovation and expanding Blackline’s reach as demand for connected worker safety technology grows across enterprises worldwide.”
Christine Wang, Partner, Francisco Partners
