Thoma Bravo Buys RealPage for $10.2B

The $10.2 billion deal is the private equity firm’s largest tech acquisition to date.
Vincent RyanDecember 21, 2020

Private equity firm Thoma Bravo, one of the most active acquirers in 2020, has reached an agreement to buy publicly held real estate software provider RealPage. The deal is valued at $10.2 billion, the companies said.

Under the terms of the deal, RealPage stockholders would get $88.75 per share of RealPage common stock upon closing, a premium of nearly 31% over RealPage’s closing stock price before the shares began a significant runup Monday morning.

“RealPage’s industry-leading platform is critical to the real estate ecosystem and has tremendous potential going forward,” Thoma Bravo said.

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RealPage’s property management platform performs site management, expense management, and financial analysis for building and property owners. A renter portal allows residents to pay rent and submit service requests. The rental real estate market has seen a shift to online activity during the COVID-19 pandemic.

RealPage expects to continue operating with Steve Winn as chairman and chief executive officer and the current RealPage leadership in Richardson, Texas, after closing.

RealPage shares were up 30% on Monday on the news, raising the firm’s price-to-earnings ratio to 125.75.

“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, adding that the deal would enhance the company’s ability to focus on executing its long-term strategy.

In its most recent earnings release, RealPage reported revenue of $298.1 million, up 17% year over year. Net income rose 40% year-over-year, to $16.3 million. The company serves more than 12,000 customers.

On the deal’s completion, RealPage would become a privately held company and no longer trade on the NASDAQ, where it went public in 2010.

The RealPage board of directors will have a 45-day “go-shop” period in which to attract a larger offer.

The companies expect the transaction to close in the second quarter of 2021.

Thoma Bravo finished raising $22.8 billion through three different investment vehicles in October. The company has more than $70 billion in assets under management.

(Photo by Gary Hershorn/Getty Images)