Shares of RealPage (RP) were jumping today after the property-management technology company agreed to be acquired by private equity firm Thoma Bravo.
As of 11:22 a.m. EST, the stock was up 29.2% to $87.65, slightly below the buyout price of $88.75, indicating a solid level of confidence that the deal will go through as announced.
The two companies said this morning that Thoma Bravo, which focuses on the technology-enabled services sector, would acquire RealPage for $10.2 billion including net debt, or $88.75 a share. The price represents a 30.8% premium over its closing price Friday, and 36.5% premium over its 30-day volume average weighted price.
RealPage CEO Steve Winn said, "We believe this transaction will provide immediate and substantial value to RealPage stockholders, reflecting the tremendous work that our employees have done to build this company." He also said the deal would allow the company to enhance its focus on executing its strategy over the long term.
RealPage has been a strong performer on the market as the stock has tripled over the last five years. Like other tech companies, RealPage has been able to continue to grow during the pandemic, posting 17% top-line growth year to date. The real estate market has also undergone a significant dislocation from the pandemic, which may add to the analytics provider's value, especially to an acquirer like Thoma Bravo, whose founder Orlando Bravo said, "RealPage's industry leading platform is critical to the real estate ecosystem and has tremendous potential going forward."
Pending shareholder approval, the deal is expected to close in the second quarter of next year.