Smartsheet will pay approximately $155 million in cash and stock to acquire Brandfolder, a Denver, Colo.-based startup that sells digital asset management software.
Founded in 2012, Brandfolder helps companies with their content management across various departments. Smartsheet said the deal will help bolster its collaborative work management platform.
“Brandfolder’s content capabilities coupled with Smartsheet’s powerful workflow and collaboration features will provide teams with a dynamic solution to securely manage, share, and publish their content, empowering cross team and organization collaboration,” Smartsheet CEO Mark Mader said in a statement.
The acquisition, Smartsheet’s largest to date, is expected to close in September. The Bellevue, Wash.-based company previously swooped up 10,000ft, Slope, and Converse.ai.
Brandfolder will continue operating as a standalone company, and its 50 employees will join Smartsheet. The startup had raised more than $10 million to date.
Smartsheet, which went public in 2018, now has approximately 83,000 domain-based customers that use the company’s software for project management and other collaborative work. It employs more than 1,600 people across five cities worldwide. Its market capitalization is nearing $6 billion.
Shares of Smartsheet had nearly doubled since March but fell more than 20% after the company’s fiscal first quarter earnings report posted in early June. Smartsheet reported $85.5 million in revenue, up 52% year-over-year, and a non-GAAP net loss per share of $0.11, down from a net loss of $0.12 last year.
On a March earnings call, Mader said the company’s strong cash position and a diverse customer base would help it get through the economic crisis.
