Blackline Safety, which designs, engineers and manufactures a line of safety devices in Calgary, has agreed to be taken private by Francisco Partners.Glenn Lowson/The Globe and Mail
Canada’s Blackline Safety BLN-T has agreed to be taken private by U.S. private equity firm Francisco Partners in a deal valued at up to $850-million, including a contingent payout tied to future revenue growth, the safety technology company said on Wednesday.
Blackline’s shareholders will receive $9.00 in cash per share when the deal closes in the second quarter of 2026, plus a contingent value right (CVR) of up to 50 cents per share if it meets certain annualized recurring revenue (ARR) targets by October, 2027.
The deal values the Calgary-based company at approximately $804-million on a fully diluted basis, which could rise to about $850-million if the CVR is fully paid, Blackline said.
Excluding the contingent payment, the offer represents a 26.5-per-cent premium to Blackline’s closing price of $7.11 per share on April 7, as per Reuters’ calculations.
The CVR payments depend on Blackline achieving at least $145-million in ARR in October, 2027. Shareholders will receive the full 50 cents per share if the ARR reaches $148.9-million or more.
In the first quarter of fiscal year 2026, Blackline recorded an ARR of $90.5-million.
Blackline offers safety monitoring software, wearable devices and real-time data services to protect workers in hazardous and industrial environments.
Editor’s note: A previous version of this article incorrectly stated Blackline’s shareholders will receive US$9 per share when the deal closes, and that the deal is valued at US$850-million. They will receive $9 Canadian in a deal valued at $850-million Canadian.