Why Information Technology Model N Shares Are Surging Today

Model N, Inc. MODN shares are trading higher after the company announced Vista Equity Partners will acquire it for $1.25 billion.

As per the terms, Vista will acquire all the outstanding shares of Model N for $30.00 per share, representing a premium of around 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 authorized its financial advisor to contact potential acquirers. 

The purchase price also represents a premium of about 16% over Model N’s 30-trading-day volume weighted average share price as of the close on April 5, 2024.

The transaction is expected to close in mid-2024, subject to customary closing conditions. 

After the deal, Model N will become a privately held company and no longer be listed in any public market.

Jason Blessing, Model N President and Chief Executive Officer, said, “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.”

Nick Prickel, Senior Vice President at Vista, stated, “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.” 

Investors can gain exposure to the stock via SPDR S&P Software & Services ETF XSW and First Trust Multi-Manager Small Cap Opportunities ETF MMSC.

Price Action: MODN shares are up 10.13% at $29.83 on the last check Monday.