Private Equity Firm Pays $1.9 Billion for Mindbody

Technology platform provider for the health and fitness industry, Mindbody Inc. (NASDAQ: MB) has agreed to be acquired by private equity firm Vista Equity Partners in an all-cash deal valued at $1.9 billion. Vista has agreed to pay $36.50 in cash per Mindbody share, a premium of 68% to the stock’s closing price on Friday.

The agreement includes a 30-day “go-shop” period during which Mindbody may actively search for alternative acquisition proposals. Mindbody has the right to terminate the deal with Vista in favor of a superior proposal.

Mindbody CEO Rick Stollmeyer commented:

[Mindbody’s] purpose is to help people lead healthier, happier lives by connecting the world to fitness, beauty and wellness. We are thrilled to provide immediate liquidity to our shareholders at a significant premium to market prices and to leverage Vista’s resources and deep expertise to accelerate our growth while achieving that purpose more effectively than ever before.

Brian Sheth, president of Vista, added:

[Mindbody’s] position as the leading technology platform for the fitness, beauty and wellness industries makes it an ideal addition to the Vista family of companies. We look forward to partnering with Rick and the entire [Mindbody] team to deliver innovation to customers that will help grow their businesses and to consumers who depend on [mindbody] to strengthen their health and well-being.

Mindbody shares traded up nearly 67% in Monday’s premarket session at $36.27 per share. The stock’s 52-week range is $21.61 to $45.50. Prior to this morning’s announcement, the 12-month price target on the stock was $35.36.

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