MINDBODY Inc (NASDAQ: MB) stock surged 64.96% on December 21st, 2018 (Source: Google finance) and continued its bullish momentum on 0.6% on December 26th, 2018 (Source: Google finance). The company agreed to be acquired by investment firm Vista Equity Partners in a deal valued at about $1.9 billion. The deal is expected to close in the first quarter of 2019 and isn’t subject to a financing condition. Mindbody shareholders will receive $36.50 in cash per share, a 68% premium to the unaffected closing price as of Friday, Dec. 21. Mindbody operates a cloud-based business management software and payments platform for the small and medium-sized businesses in the wellness services industry. Based in San Francisco, Vista Equity Partners specializes in investments in the software, data, and technology industries. In addition to its website, Mindbody offers a free mobile app that links the user to a worldwide network of Mindbody businesses.
Users can look through what’s offered by local fitness, beauty and wellness businesses that have opted in, scanning their lists of classes, booking appointments and buying passes.
By adding a credit card to the account or a gift card from a business, users can even pay for their appointment in advance.
Mindbody’s board has unanimously approved the deal and recommended that stockholders vote their shares in favor of the transaction, the statement said. The closing of the transaction is subject to customary conditions. Closing will also require the federal government to determine it doesn’t violate antitrust laws.
The definitive agreement for the transaction includes a 30 day “go-shop” period, which permits Mindbody’s board and financial advisors to actively initiate, solicit, encourage and potentially enter negotiations with other parties that make alternative acquisition proposals. Should a superior proposal be found, Mindbody will have the right to terminate the agreement Vista to enter into the alternative deal.
On the other hand, for the fourth quarter 2018, MINDBODY expects to report the revenue to be in the range of $65.0 million to $67.0 million, representing 31% to 35% growth over the fourth quarter of 2017. Non-GAAP net loss for the fourth quarter of 2018 is expected in the range of $(5.0) million to $(3.5) million and weighted average shares outstanding for the fourth quarter of approximately 47.9 million shares.
Total revenue for the third quarter of 2018 was $63.8 million, a 37% increase year over year. Subscription and services revenue for the third quarter of 2018 was $40.8 million, a 44% increase year over year. Payments revenue for the third quarter of 2018 was $22.0 million, a 24% increase year over year.