Will Mind­body leave SLO, lay off work­ers after buy­out? CEO sends email to staff

The Tribune (SLO) - - Front Page - BY KAYTLYN LESLIE

Soon after news broke that Mind­body — one of the largest tech em­ploy­ers in the county — was be­ing sold to a San Fran­cisco-based pri­vate eq­uity firm, Vista Eq­uity Part­ners, on Mon­day, one ques­tion was heard above all oth­ers:

Does this mean Mind­body will leave San Luis Obispo?

A Mind­body rep­re­sen­ta­tive de­clined to com­ment on the ques­tion Mon­day, cit­ing U.S. Se­cu­ri­ties and Ex­change Com­mis­sion rules that re­quire tight lips dur­ing this stage of the deal. (The SEC reg­u­lates pub­lic com­pa­nies like Mind­body.)

But in its SEC fil­ings on Wed­nes­day, an at­tached email to staff seemed to have the an­swer: no.

“We ex­pect that Mind­body head­quar­ters will re­main in SLO,” the email said.

The email, which was sent out to Mind­body staff by CEO Rick Stollmeyer on Mon­day at the same time as the an­nounce­ment of the $ 1.9 bil­lion ac­qui­si­tion, in­cluded a spe­cial em­ployee FAQ de­tail­ing some of the as­pects of the pro­posed merger.

The email ad­di­tion­ally said that no lay­offs are ex­pected as a re­sult of the deal.

“You are at the heart of our pur­pose as a com­pany,” the email said. “This is an amaz­ing op­por­tu­nity for us and we want ev­ery­one to have a part in our fu­ture.

“While Vista is ac­quir­ing Mind­body be­cause of the strength of our prod­ucts and ser­vices, our cus­tomer base and the strength of the mar­ket op­por­tu­nity — they know that the only durable as­set of a soft­ware com­pany is its peo­ple (you), and they’re look­ing for­ward to work­ing with the en­tire Mind­body team. There are no lay­offs planned.”

Vista has also agreed to not de­crease em­ployee salaries or bonuses for at least a year fol­low­ing the pur­chase, ac­cord­ing to the email. It will



email to staff from Mind­body CEO Rick Stollmeyer

also “main­tain Mind­body ben­e­fit plans or pro­vide sub­stan­tially com­pa­ra­ble plans,” through­out that same time pe­riod, the email said.

In the email, Stollmeyer said the ac­qui­si­tion was the “best op­tion for share­hold­ers, and a fan­tas­tic op­tion to fos­ter value for you and longterm growth for Mind­body.”

“I had the op­por­tu­nity to meet Vista’s founder, chair­man and CEO, Robert Smith, and hear him speak re­cently,” Stollmeyer wrote. “I came away deeply im­pressed by the in­tel­li­gence, sense of pur­pose and hu­mil­ity of this ex­traor­di­nar­ily suc­cess­ful man. His val­ues per­me­ate Vista Eq­uity Part­ners, and he in­spires me.”

Stollmeyer con­cluded the email by thank­ing staff for their hard work.

“It is through your ded­i­ca­tion, pas­sion, hard work and in­cred­i­ble tal­ent that we have ar­rived at this piv­otal mo­ment,” he wrote. “To­gether, we have built a com­pany, prod­ucts, ser­vices and mis­sion that is un­ri­valed.

“With Vista, I’m con­fi­dent we’ll build upon our suc­cesses and ac­cel­er­ate on our path toward help­ing peo­ple ev­ery­where lead health­ier, hap­pier lives. Our fu­ture is bright and I look for­ward to con­tin­u­ing on this jour­ney with you.”

Per its con­tract, Mind­body has 30 days to shop around for other ac­qui­si­tion pro­pos­als. If none are ac­cepted, then the deal is ex­pected to close in the first quar­ter of 2019.

Cour­tesy photo

Em­ploy­ees of Mind­body cel­e­brate the grand open­ing of its cam­pus in San Luis Obispo in 2016. The busi­ness is be­ing pur­chased by San Fran­cisco-based pri­vate eq­uity firm Vista Eq­uity Part­ners for $1.9 bil­lion.

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