Model N downgraded to Hold from Buy at Needham

Needham analyst Ryan MacDonald downgraded Model N to Hold from Buy without a price target after Vista Equity Partners announced its intent to acquire Model N for $1.25B or $30 per share. The believes another bidder stepping in is unlikely and views the valuation as fair given the company’s fundamental profile of mid-single digit growth and high-teens adjusted EBITDA margin. It expects the transaction to close as scheduled in mid-2024.