MINDBODY, San Louis Obispo, California, has entered into a definitive billion-dollar agreement to be acquired by private equity firm Vista Equity Partners, San Francisco, the companies announced Dec. 24.
In the first quarter of 2019, Vista will acquire all of MINDBODY's outstanding common stock shares for $1.9 billion, according to the agreement terms. MINDBODY shareholders will also earn $36.50 in cash per share, which reflects a 68 percent premium to the publicy traded company's Dec. 21 closing price.
“MINDBODY’s purpose is to help people lead healthier, happier lives by connecting the world to fitness, beauty and wellness,” MINDBODY CEO Rick Stollmeyer said in a media release. “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.”
MINDBODY's board of directors unanimously approved the deal and recommended that company stockholders vote their shares in favor of the transaction, the release said.
“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,” Brian Sheth, president and co-founder of Vista, said in the release. “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.”
Qatalyst Partners is serving as MINDBODY's exclusive financial advisor, while Cooley LLP is serving as legal advisor. Vista's legal advisor is Kirkland & Ellis LLP.
MINDBODY recently reported $63.8 million in third quarter 2018 revenue, a 37 percent increase from the same period last year. The company also announced that conference attendance for its annual MINDBODY BOLD event grew by 45 percent in 2018.
Recently, MINDBODY has grown through numerous acquisitions, including FitMetrix, Booker Software and Frederick.