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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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Someone should probably start selling lottery tickets for not if, but when they will leave. I wonder if the government will treat them the same way that they have tried to extort PG&E when they depart?


6

Having been through 3 (yes, 3) instances of where a merger (or take-over) occurs – there were always (repeat, always) layoffs. My background was in semiconductor electronics in the Bay Area, and layoffs were almost as common as getting a cold. Call it corporate double-speak or whatever; but can anybody imagine Mr. Stollmeyer saying anything other than what he said??

Time will tell, but my advice to any Mindbody employee is to get your resume up-to-date and start looking. All-in-all, the winners were Mr. Stollmeyer and a few others that owned considerable stock. Good luck.


12

A strong suggestion for anyone currently working Mindbody, if you want to stay in the SLO area start looking now for a new job. You may be offered a job in the new location but it likely will not be in anti-business CA or may be in a city you wouldn’t want to transfer too.


8

Very funny multi-million-per-year Rick. There are no layoffs planned, but plans can change. Why would they keep your telepersons here in such an expensive place when they could do that from Iowa for lots cheaper? If I worked for MB, I’d be looking sooner rather than later.


8

Again, what is the strength of Mindbody ?


Creative Individual/Leaders who reside here-Stay

Local Customer Base-stay

Unique talent pool- stay


Software – Move elsewhere


In my opinion it is the software itself, which is 100% portable. I do not see any reason for them to stay in the area. Nothing against SLO, except that it is so expensive to bring in outside talent (top and mid level) who do not already reside here. That is why they are now carefully wording

their statements. Not being able to recruit top talent to your company because of economic/geographic reasons is a major showstopper for most top executives who want to grow their company.


7

Aw, the “standard corporate double-speak to prevent exodus” technique. A classic!


21

Who wants to start the “Mindbody Countdown to Layoffs/Moving HQ” countdown pool?


17

No layoffs in the near future, is more

Like it.


13

“There are no layoffs planned.”


Oh boy, I’ve heard this exact message or the “we can’t comment on employee numbers at this time” right before layoffs.


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