In a staggering $10.2 billion all-cash transaction announced Monday, Dallas-area real estate software company RealPage went from publicly-traded to privately-held Monday after its purchase by tech-focused PE juggernaut Thoma Bravo.
Under terms of the deal, RealPage stockholders will receive $88.75 in cash per share of RealPage common stock, which represents a premium of more than 30% over the RealPage closing stock price of $67.83 last Friday, December 18 and 27% premium over the company’s highest ever closing price of $69.47. The $10.2 billion price tag includes outstanding company debt.
RealPage CLO David Monk said he and an in-house team hammered out the deal with outside advice from Wachtell, Lipton, Rosen & Katz. Besides Monk the in-house team included Cori Ulrich, SVP and deputy general counsel; Rob Traycoff, VP of corporate compliance and VP and associate general counsel Martin Thornthwaite. The Wachtell lawyers were based in New York.
BofA Securities was financial advisor to RealPage.
Thoma Bravo was advised by a 44-lawyer team from Kirkland & Ellis led from Chicago. They were assisted by lawyers from New York, London, Washington, D.C. — and two from Texas: environmental partner Stefanie Gitler, who splits time between Houston and Washington, D.C. and Cassidy Hall, a corporate associate in Dallas.
Goldman Sachs is providing financing for the transaction, as well as financial advice to Thoma Bravo.
Kirkland also advised Thoma BravoIn its October acquisition of AxiomSL, a risk-management data analytics firm focused on regulated industries.
Even after closing, RealPage expects to continue operating under its existing management, including chairman and CEO Steve Winn.
“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 Winn. “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.”
Based in Richardson, a suburb of Dallas, RealPage provides a broad range of digital services and analytics that range from online payments and utility management to risk management and return on investment for residential and commercial real estate.
Thoma Bravo, with offices in Chicago and San Francisco, specializes in investments in tech-driven companies. As of the end of September, the company said it had $73 billion in assets under management.
“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,” said Scott Crabill, a managing partner at Thoma Bravo.”