Global equity manager ClearBridge Investments wants healthcare IT firm Model N to reconsider the planned acquisition of the business by private investment firm Vista Equity Partners, according to a report by Reuters.
Last week, Model N agreed a take-private deal valued at around $1.25bn with Vista Equity Partners. Clearbridge, which has more than $188bn in AUM and owns around 6.9% of Model N, has said that the deal does not represent good value for shareholders.
In a letter to Model N, ClearBridge wrote: “We believe the proposed acquisition materially undervalues Model N’s outlook as a public company or value to strategic or financial buyers.”
Instead, ClearBridge wants the company’s board and its advisors to remain “open-minded to potentially superior offers” and also to consider the option of remaining as a publicly-listed company.
