Richardson-based RealPage Inc. — the fast-growing real estate management services and software firm — is being sold in a deal valued at more than $10 billion.
RealPage has agreed to a purchase by Thoma Bravo, the San Francisco-based private equity firm.
The transaction is scheduled to close in the second quarter of next year.
RealPage has been in business since 1998 and serves more than 12,000 property company clients worldwide. The company’s clients include owners and operators of apartments, with more than 19 million rental units in North America, Europe and Asia. RealPage sells software, operating systems and provides analytics to the rental industry.
During the last few years, RealPage has greatly enlarged its footprint with acquisitions of smaller companies.
“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,” RealPage chairman Steve Winn said in a statement. “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.”
After the acquisition is completed, RealPage will continue to be based in Richardson and operate under the leadership of Winn, according to the buyout agreement.
Winn and “certain affiliated entities” own about 10% of RealPage’s stock.
RealPage went public a decade ago in a stock sale valued at $135.3 million.
The company has acquired about three dozen companies over the years.
RealPage had about 7,000 employees at the start of 2020.
The company expects 2020 sales of more than $1.1 billion.
With the purchase by Thoma Bravo, RealPage shareholders will receive $88.75 in cash per share of RealPage common stock — more than a 30% premium above the company’s last closing price.
Buyer Thoma Bravo’s holdings include investments in tech and software firms. The company, which has offices in San Francisco and Chicago, manages more than $73 billion in assets.
“RealPage’s industry leading platform is critical to the real estate ecosystem and has tremendous potential going forward, Orlando Bravo, founder and a managing partner of Thoma Bravo, said in a statement. “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.
“Together, RealPage and Thoma Bravo can partner to grow the company’s market offerings and enhance its current capabilities to capitalize on the increasingly complex and expanding real estate market.”
