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San Luis Obispo based Mindbody to sell for $1.9 billion

December 24, 2018

San Luis Obispo-based software company Mindbody announced Monday it has entered into a merger deal in which it will sell to a private equity firm for $1.9 billion. [Cal Coast Times]

Mindbody is a publicly traded company that sells software for managing health and wellness businesses. San Francisco-based Vista Equity Partners, an investment firm focused on software, data and technology-enabled business, has agreed to purchase Mindbody, according to a jointly issued news release.

Vista will acquire all outstanding shares of Mindbody common stock for approximately $1.9 billion. Mindbody shareholders will receive $36.50 per share in cash, amounting to a 68 percent premium from Friday’s closing price of $21.72.

“Mindbody’s purpose is to help people lead healthier, happier lives by connecting the world to fitness, beauty and wellness,” Mindbody co-founder and CEO Rick Stollmeyer said in a statement. “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.”

Brian Sheth, the co-founder and president of Vista, said in a statement that Mindbody is the leading technology platform for the fitness, wellness and beauty industries and is an ideal fit for Vista’s family of companies.

“We look forward to partnering with Rick and the entire Mindbody team to deliver innovation to customers that will help grow their business and to consumers who depend on Mindbody to strengthen their health and wellbeing,” Sheth said.

Mindbody’s board of directors has unanimously approved the deal and recommended that stockholders vote their shares in favor of the transaction. The sale is expected to close in the first quarter of 2019, but it is subject to customary closing conditions, including the approval of Mindbody shareholders and United States antitrust approval.

Likewise, 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. Mindbody will have the right to terminate the merger agreement with Vista in order to enter into a better deal.


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I agree with all posting here that they will move. Here’s the deal…it’s pretty nice here, but NOT nice enough to sacrifice the economics of living well, with the ridiculously priced real estate, bizarre focus on styrofoam, bikes, plastics and straws and the increasingly street-roaming mentally ill. Tack on the increasing burden on the “producing class”, like taxes and entitlements, the anti-business, socialist rise of “progressive” leadership in California. Business mostly sees NO future here. The southern states, even the looney Pacific Northwest, seems more attractive. We all can see this coming. And it is NOT Mindbody’s fault.


9

One might think that the owners will use their mind then engage their body to relocate this MINDBODY company but remember of the move to New York another company did. SLO is much more affordable and a better place to live than New York. I get the animosity California deserves but just like the stock market, reality will cleanup the dirty shorts in California politics. I’d look forward to better times for California, as in the obvious negligence and waste can only end just like the free money in the stock market.


-6

But you must be aware there are many more tech and business friendly, non California cities, who would welcome this company without the hassle CA has become, and many are in much more affordable areas..


6

The company will be moved ,,, only city ,,county ,, and state federal employers have an unlimited bank account to retain employees in SLO county area


14

Vista Equity has been known to move companies that they purchase to Texas, adios muchachos. This happened to another SLO based company known as Shopatron.


26

It’s hard to understand stupid, but paying that much for a money losing company might fit the bill.


19

You obviously don’t know how to value public cloud subscription (SaaS–Software as a Service) companies. Just under $2 billion is not expensive. But perhaps you’re a stock analyst and I just don’t know it.


-5

Like you aid there piu-on,wonder how long it will take for the new owner to pack up the SLO shop and move to cheaper pastures? Starting to see a pattern in so called paradise.


23

There will be the usual wording that they plan to stay here etc etc. Standard Boilerplate language to satisfy all the naysayers. I am not totally familiar with Mind/Body. If the companies main strength is the software itself, they are out of here relatively quickly. If it is the intellectual capital i.e. people, then it is a longer haul to stay local.

Meanwhile the plan would be to leverage/gain economy of scale with other businesses in the investors portfolio. SLO is not in good geographical place to keep feeding resources/people to a company like this. Just my 2 cents


17

Wonder how long Mindbody will stay in SLO? Probably not long.


25

They will stay. The buyer is a Private Equity company and this is an investment for them; it’s not a tech company that will absorb the company into other offices.


-14

This is a product for them. They’ll buff-up Mindbody’s bottom line (by cutting costs) and then take bids on it.


4

I give it a year, then they are out of SLO


30