Model N (a leader in revenue optimization and compliance for pharmaceutical, medtech, and innovators) announced today that it has entered into a definitive agreement to be acquired by Vista Equity Partners. Under the terms of the deal, Vista will acquire all the outstanding shares of Model N common stock for $30 per share in an all-cash transaction valued at about $1.25 billion.
This purchase price represents a premium of about 23% over Model N’s 30-trading-day volume weighted average share price as of the close on January 10, 2024, the day before the Model N Board of Directors authorizing its financial advisor to contact potential acquirers, and a premium of approximately 16% over Model N’s 30-trading-day volume weighted average share price as of the close on April 5, 2024.
The deal is expected to close in mid-2024, subject to customary closing conditions. Upon the completion of the deal, Model N will become a privately held company and shares of Model N common stock will no longer be listed on any public market.
Jefferies is serving as exclusive financial advisor and provided a fairness opinion to Model N, and Fenwick & West LLP is serving as legal counsel. And Kirkland & Ellis LLP is acting as legal counsel to Vista.
KEY QUOTES:
“We are pleased to have reached this agreement with Vista, which is the culmination of a robust sale process led by our Board of Directors with the assistance of our financial and legal advisors. As the Board considered the long-term path for Model N, we unanimously determined that the transaction with Vista represents the best opportunity to deliver compelling, certain, and immediate cash value to our stockholders and is in their best interest in light of the challenges faced by Model N as a standalone public company.”
– Baljit Dail, Chairman of the Model N Board
“The need for revenue optimization and compliance solutions that deliver comprehensive visibility and control is greater than ever. As a private company under Vista’s ownership, we will have the added resources to navigate this dynamic market and drive ARR growth for the long term. Vista understands our strengths, culture, and customer-centric philosophy as we position our company to capture market opportunities and accelerate our global impact.”
– Jason Blessing, Model N President and Chief Executive Officer
“Model N is a pioneer in revenue management solutions for the life science and advanced technology industries. They’ve built a strong reputation through a straightforward formula – offering mission-critical products to help maximize revenue growth within some of the most important and innovative companies in the world.”
– Michael Fosnaugh, Co-Head of Vista’s Flagship Fund and Senior Managing Director
“Model N enables leading life science and advanced technology companies to optimize their commercialization and compliance processes with mission-critical products specifically designed to address the complexities of these dynamic markets. We look forward to working closely with the Model N team as they embark on this exciting next chapter.”
– Nick Prickel, Senior Vice President at Vista
