The busy year in M&A continued this weekend when private equity firm Thoma Bravo announced it was acquiring RealPage for $ 10.2 billion.
In RealPage Thoma Bravo receives a full-service platform for property management with services such as tenant portals, location management, cost management and financial analysis for building and property owners. Orlando Bravo, founder and managing partner of Thoma Bravo sees a company to work with and build on its previous track record.
"RealPage's industry-leading platform is critical to the real estate ecosystem and has tremendous potential for the future," Bravo said in a statement.
For RealPage, the company's CEO, Steve Winn, who will stay with the company, sees the deal as a huge win for shareholders while also allowing them to continue investing in the product. "This will improve our ability to focus on executing our long-term strategy and delivering even better products and services to our customers and partners," Winn said in a statement.
RealPage was founded in 1998 and went public in 2010. It's a typical mature platform that a private equity firm like Thoma Bravo is drawn to. The company has a strong customer base with over 12,000 customers and respectable sales that are growing at a modest pace. In its most recent income statement, the company reported sales of $ 298.1 million, up 17% over the previous year. This puts the run rate at over $ 1 billion.
Under the terms of the agreement, Thoma Bravo will pay RealPage shareholders $ 88.75 in cash per share. That's a premium of more than 30% compared to the closing price of $ 67.83 on December 18th. The transaction is subject to standard government review and the RealPage board has a 45 day "Go Shop" window to see if it can find a better price. Given the premium pricing for this business, it's not likely, but there will be an opportunity to try.