RealPage, the Richardson-headquartered global provider of real estate industry software and data analytics, has been acquired by private equity investment firm Thoma Bravo.
Under the definitive agreement, Thoma Bravo will acquire RealPage in an all-cash transaction that values the real estate company at around $10.2 billion, including net debt. The purchase price is a premium of around 31 percent over RealPage’s closing stock price on Dec. 18, per a news release.
Once the deal is complete, RealPage expects to continue operating under Chairman and CEO Steve Winn and his existing leadership team in Richardson.
RealPage’s Board of Directors has already unanimously approved the agreement and recommended that stockholders vote in favor at a special meeting being held in connection with the transaction.
“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,” Winn said in a statement. “I am immensely proud of that work and also pleased that the transaction will provide us the opportunity to work with Thoma Bravo, a firm with tremendous software investment and operational capabilities.”
Chicago-based Thoma Bravo, which has more than $73 billion in assets, is a PE firm that focuses on software- and technology-enabled services sectors. The firm has a record of acquiring cutting edge software providers and driving innovation and growth while remaining true to their core business and customers.
The firm plans to apply its operational and investment expertise to continue expanding RealPage’s footprint and identify M&A opportunities, according to Thoma Bravo Managing Partner Scott Crabill.
Crabill said RealPage’s diverse product portfolio puts it in a prime position to accelerate its market leadership. That’s especially important as technology transformation takes on increasing importance in the real estate industry.
RealPage’s tech platform helps real estate owners and managers change how people experience and use rental space. Users are able to get more transparency in asset performance, leverage data, and monetize space to create incremental yields. Founded in 1998, RealPage currently serves more than 19 million units worldwide, per a news release.
Winn said that the acquisition will enhance RealPage’s ability to focus on executing its long-term strategy. It will also allow the team deliver even better products and services to its clients and partners.
“RealPage’s industry leading platform is critical to the real estate ecosystem and has tremendous potential going forward,” Orlando Bravo, founder and a managing partner of Thoma Bravo, said in a statement. “Together, RealPage and Thoma Bravo can partner to grow the company’s market offerings and enhance its current capabilities to capitalize on the increasingly complex and expanding real estate market.”
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