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MINDBODY officially sold to Vista Equity Partners

Posted at 2:40 PM, Feb 15, 2019
and last updated 2019-02-16 00:13:32-05

San Luis Obispo based MINDBODY has completed its sale to the investment firm of Vista Equity Partners in a $1.9 billion transaction.

The acquisition, which was originally announced on Christmas Eve, closed on Friday after getting approval from stockholders, according to a press release from the company.

In announcing the sale in December, shareholders were to receive $36.50 in cash per share, which is a 68 percent premium to the unaffected closing price as of Dec. 21, 2018.

“Seventeen years ago, we set out on a journey to leverage technology to improve the health and wellness of the world. Today, that technology is helping people lead healthier, happier lives by connecting the world to fitness, beauty and wellness,” said Rick Stollmeyer, Co-Founder and CEO of MINDBODY.

In a filing with the Securities and Exchange commission in December, the company said there are no planned management changes, they “expect MINDBODY headquarters will remain in SLO,” and “there are no layoffs planned.”

A class action complaint was filed in late January against MINDBODY and the company’s Board of Directors over plans to sell the tech company.

The complaint filed in San Luis Obispo County Superior Court on behalf of a plaintiff, Joseph Schmit, as well as other stockholders in the company.

The complaint names MINDBODY, Inc, as well as its Co-Founder and CEO, Rick Stollmeyer, and seven others affiliated with the company.

It says the company breached its fiduciary duty by selling the company to affiliates of Vista Equity Partners.

MINDBODY released the following statement Friday:

“We’re thrilled to be the newest addition to the Vista family of companies. This acquisition has provided our shareholders with immediate liquidity at a significant premium to market prices. With Vista, the MINDBODY Team will be able to accelerate our growth, helping people lead healthier, happier lives by connecting them with fitness, beauty and wellness services worldwide. We look forward to serving our customers, consumers and partners better than ever before.”

With the completion of the acquisition, MINDBODY common stock ceased trading and is no longer listed on the Nasdaq Stock Market.

This story will be updated with further information when available.