Mindbody CEO says no layoffs, company will stay in SLO after sale

December 28, 2018

The CEO of San Luis Obispo-based software company Mindbody has said the tech firm’s headquarter will remain in SLO after it is acquired by a San Francisco-based private equity firm. [Cal Coast Times]

In an email to Mindbody employees, CEO Rick Stollmeyer also said no layoffs are expected as a result of the $1.9 billion merger deal between Mindbody and Vista Equity Partners. Likewise, for at least a year following the purchase, Vista has agreed to impose no pay cuts and to provide Mindbody employees with the same or comparable benefits they received before the sale of the company.

“While Vista is acquiring Mindbody because of the strength of our products and services, our customer base and the strength of the market opportunity — they know that the only durable asset of a software company is its people (you), and they’re looking forward to working with the entire Mindbody team. There are no layoffs planned,” Stollmeyer said in the email.

Mindbody is a publicly traded company that sells software for managing health and wellness businesses. Vista is a private equity firm focused on software, data and technology-enabled businesses.

The sale agreement calls for Vista to acquire all outstanding shares for approximately $1.9 billion. Mindbody shareholders will receive $36.50 per share.

While the merger is expected to occur, the sale is yet to be finalized. The sale agreement includes a 30-day “go-shop” period, in which Mindbody’s board of directors and financial advisors can solicit, encourage and potentially enter negotiations with other parties that make alternative acquisition offers.


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Gordo

From a Tribune Article in December of 2016.

https://www.google.com/amp/s/amp.sanluisobispo.com/news/business/article122317329.html


“The locally based Shopatron employed about 160 people in San Luis Obispo and 10 in England when it was sold in November 2015 to Vista Equity Partners, a private U.S.-based equity firm focused on investing in software and technology-enabled businesses.


At that time, Shopatron CEO Ed Stevens said that all current employees would be retained.


The company rebranded under the Kibo name in December 2015 as part of its merger with several other Vista-owned tech companies.”


Good luck to all the “cool kids” who quit government IT to go where the money was..


Gordo

Glad I didn’t leave a secure government IT job to go to Mindbody. I bet there are a few over there wishing they could say that right now.

I expect the new owners will keep their promise for about a year. Then they will say an unanticipated downturn in the economy has forced them to make certain “economies” such as facility relocations for lower per sq. ft. office leasing (perhaps Fresno or Riverside) and wage reductions vs. personnel layoffs. Of course, they will keep the staff masseuse, but a nominal fee will be charged to offset costs and the company will continue to let you drink beer at work, if you pay for it yourself and living in Fresno or Riverside will make you want to drink lots of beer!


jebussaves

The ex employees of Shopatron can tell you what happened after Vista Equity pirchased the company. The founder and CEO of Shopatron said there will be no layoffs and we don’t plan on closing office in SLO, lol.


Where are they now?