RealPage Inc.’s shares jumped up to 32% following private equity giant Thoma Bravo agreed to purchase the true estate program manufacturer for about $ 9.6 billion.
Thoma Bravo is supplying investors 88.75 in cash for every share of RealPage,” the firms said in an announcement on Monday.
The software firm’s stock rose 30 percent to $88.50 in 9:52% in New York after earlier reaching $89.20, a record high for those stocks.
RealPage, a manufacturer of applications for managing leasing properties, had climbed more than 26 percent annually by Friday–outpacing a 15% profit from the S&P 500 –following the stunt resisted the adoption of internet and electronic services over peer to peer alternatives. The firm in November improved its earnings per share forecast to the year following reporting quarterly earnings before expectations. It is currently valued at roughly 35 times estimated earnings, versus 26 for its standard index.
RealPage’s executive group from Richardson, Texas, such as Chief Executive Officer Steve Winn, are predicted to keep on directing the business after the deal closes,” the firms said in the announcement.
The purchase will be the largest so far for Thoma Bravo, that oversees over $73 billion. It is carved out a niche inside the buyout business, focusing on cloud computer software companies that draw continuous, recurring earnings.
The firm usually makes operational alterations to the businesses that it acquires, typically keeping management in position and focusing on growth instead of cost cutting. It is a version that has proved remarkably profitable, especially throughout the coronavirus pandemic. It stated in October it’d increased three funds totaling over $22.8 million.
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