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Shares of RealPage Inc. jumped 32% after private equity giant Thoma Bravo agreed to buy the real estate software maker for $ 9.6 billion.
Thoma Bravo is offering investors $ 88.75 in cash for each RealPage share, the companies said in a statement Monday. The deal represents a 31% premium over the company’s closing share price on Dec. 18 and values ​​the company at $ 10.2 billion, including debt.
Shares of the software company rose 30% to $ 88.50 as of 9:52 a.m. in New York after hitting $ 89.20 earlier, a record high for stocks.
RealPage, a rental property management software maker, had grown more than 26% this year through Friday – surpassing a 15% gain in the S&P 500 – after the pandemic spurred the uptake of online services and digital versus in-person alternatives. In November, the company increased its earnings per share forecast for the year after reporting higher than expected quarterly earnings. It is now valued at around 35 times the estimated profit, compared to 26 for the benchmark.
RealPage’s management team in Richardson, Texas, including CEO Steve Winn, are expected to continue leading the business after the deal closes, the companies said in the statement.
The acquisition would be the largest to date for Thoma Bravo, which manages more than $ 73 billion. It has carved out a niche in the buyout industry, focusing on cloud software companies that generate regular and recurring sales.
The company typically makes operational adjustments to the businesses it acquires, typically keeping management in place and focusing on growth rather than cost reduction. It’s a model that has proven to be remarkably lucrative, especially during the coronavirus pandemic. He said in October that he had raised three funds totaling more than $ 22.8 billion.
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