MINDBODY Goes Private In Deal With Vista Equity Partners

Software company MINDBODY, which makes platforms for the fitness industry, will become a private company after a brief stint as a public one.

The Wall Street Journal, citing MINDBODY, reported the company is going private via a $1.9 billion deal with Vista Equity Partners, which has purchased all of the company’s stock.

MINDBODY has been public for around three years. Under the terms of the deal, the company’s shareholders get $36.50 in cash per share, which represents a 68 percent premium from where the stock closed in trading last week. The deal is scheduled to be completed during the first quarter of 2019. There is also a 30-day go-shop period in which MINDBODY can entertain competing offers. The WSJ noted that payment systems are a large portion of the software company’s business, accounting for 36 percent of its revenue so far this year. It also has 12 million registered users that use its consumer app.

“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,” Rick Stollmeyer, co-founder and chief executive of MINDBODY, said in prepared remarks, according to the paper. MINDBODY said the company’s board unanimously approved the deal and recommended shareholders vote in favor of it.

“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,” said Brian Sheth, co-founder and president of Vista, in a press release announcing the deal. “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.”