Model N to Go Private in $1.25B Acquisition by Vista Equity Partners

Model N, a platform used by companies such as Johnson & Johnson, AstraZeneca, and AMD to automate decisions related to pricing, incentives, and compliance, is going private in a $1.25 billion deal. Vista Equity Partners is doling out $30 per share in the all-cash transaction, representing a 12% premium on Friday’s closing price, and 16% on its 30-day average. Founded in 1999, Model N’s software integrates with various data sources and internal systems to help companies analyze trends, pricing efficacy, market demand, and more. The platform is typically used in industries such as pharmaceuticals and life sciences, where there may be complex pricing structures, and where regulatory or market changes can impact business. However, its valuation has generally hovered below the $1 billion market for the past six months, sparking Vista Equity Partners into action today.

After years of being a trusted platform for companies such as Johnson & Johnson, AstraZeneca, and AMD to automate crucial decisions regarding pricing, incentives, and compliance, Model N is now making a big move. The company is set to go private in an immense $1.25 billion deal.

In this all-cash transaction, Vista Equity Partners will be paying $30 for each share, giving it a 12% premium compared to Friday’s closing price and a 16% premium based on its 30-day average.

Founded in 1999, Model N has established itself as a leader in its industry. Its powerful software seamlessly integrates with various data sources and internal systems, helping companies analyze vital information such as trends, pricing success, market demand, and more. The platform has been especially beneficial for industries such as pharmaceuticals and life sciences, where complex pricing structures and unpredictable market changes can make or break a business.

Model N initially went public on the New York Stock Exchange in 2013, and its performance has been consistent since then. However, it wasn’t until 2019 that its market cap began to steadily increase, ultimately reaching an all-time high of $1.6 billion last year. Despite this success, the company’s valuation has been below the $1 billion mark for the past six months. As a result, Vista Equity Partners has taken action and seized the opportunity to acquire Model N today.