Thoma Bravo Plans To Acquire RealPage For $10.2 Billion

Private equity firm Thoma Bravo is set to acquire RealPage, which provides software and data analytics to the real estate industry. The all-cash deal values RealPage, a publicly-traded company, at $10.2 billion, including net debt.

Under the terms of the agreement, RealPage’s stockholders will get $88.75 in cash per share of RealPage common stock when the deal closes, according to a press release. “The purchase price represents a premium of 30.8 percent over RealPage’s closing stock price of $67.83 on December 18.”

In addition, RealPage’s board has “has unanimously approved the agreement,” and urges RealPage stockholders to approve the deal at a planned special meeting of RealPage stockholders related to the transaction, the release said. RealPage, of Richardson, Texas, said it expects to continue operations with the same leadership team.

“We believe this transaction will provide immediate and substantial value to RealPage stockholders,” said Steve Winn, chairman and CEO. He added that the deal will help his company “focus on executing our long-term strategy and delivering even better products and services to our clients and partners.”

“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,” said Orlando Bravo, founder and managing partner of Chicago-based Thoma Bravo.

According to the release, the deal is subject to certain conditions, including the approval “by the holders of a majority of the outstanding shares of RealPage common stock.”

Under the terms of the agreement, RealPage’s board of directors “may actively initiate, solicit and consider alternative acquisition proposals during a 45-day ‘go shop’ period.” However, “Winn and certain affiliated entities, which collectively own approximately 10 percent of the outstanding shares of RealPage common stock” have agreed to vote for the merger under a variety of conditions, the release stated.

Thoma Bravo, with more than $73 billion in assets under management, said that its investment strategy is focused on the software and technology services sectors.

The RealPage deal comes as multifamily developers adjust their offerings during the pandemic-fueled shift to working from home.