Firm will become a privately held company under the deal
RealPage, a global provider of software and data analytics to the real estate industry, has been acquired by private-equity firm Thoma Bravo.
The announcement comes just a few months after Intercontinental Exchange (ICE) swooped on Ellie Mae from Thoma Bravo. On Monday, Thoma Bravo added another real estate heavyweight to its portfolio.
“RealPage’s industry-leading platform is critical to the real estate ecosystem and has tremendous potential going forward,” said Orlando Bravo, founder and a managing partner of Thoma Bravo. “Our firm has a track record of acquiring cutting edge software providers to specialized industries and driving their innovation and growth while remaining true to their core business and customers.”
The acquisition, which values RealPage at roughly $10.2 billion (including net debt), means that RealPage will become a privately held company, and its common stock will no longer be listed on the NASDAQ stock market.
As part of the deal, RealPage stockholders will receive $88.75 in cash per share of common stock upon closing. The purchase price represents a premium of 30.8% over RealPage’s closing stock price of $67.83 on December 18, 2020, a premium of 36.5% over RealPage’s 30-day volume-weighted average share price through that date, and a premium of 27.8% over RealPage’s all-time high closing stock price of $69.47 on December 7, 2020.
The agreement has already received the unanimous approval of RealPage’s board of directors but remains subject to customary conditions and approval of stockholders. Upon completion of the transaction in Q2 2021, RealPage will continue to operate under the leadership of chairman and CEO Steve Winn and its existing leadership team based in Richardson, Texas.
“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,” said Steve Winn, chairman of the board and CEO of RealPage. “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. This will enhance our ability to focus on executing our long-term strategy and delivering even better products and services to our clients and partners.”
“We are thrilled to partner with Steve and the RealPage team at this exciting milestone in the company’s journey,” said Scott Crabill, managing partner at Thoma Bravo. “As technology transformation takes on increasing importance in the real estate industry, RealPage’s diverse and innovative portfolio of products and solutions puts the company in prime position to accelerate its market leadership. We look forward to applying Thoma Bravo’s operational and investment expertise in software to help drive RealPage’s continued growth and identify attractive M&A opportunities.”
