Once the transaction closes, Majesco will operate as a privately held company.
The agreement provides Majesco shareholders $13.10 in cash for each share of Majesco common stock. The price represents a 71% premium over Majesco’s Friday closing price of $7.64.
The stock recently traded at $12.90, up 68.85%, and has risen 56% year to date.
Majesco needs approval from its shareholders and expects the merger to close by year-end.
The company’s leadership team, including CEO Adam Elster, is slated to remain in place.
Thoma Bravo focuses on software services companies.
“We are extremely excited to partner with Thoma Bravo, a firm with an established track record of working with companies transitioning to the cloud,” Elster said in a statement.
“This transaction delivers significant cash value to our stockholders. Moreover, the added flexibility we will have as a private company, combined with the benefit of Thoma Bravo’s knowledge and domain expertise, can allow us to more effectively focus on our long-term investment and growth objectives.”
Thoma Bravo also is enthusiastic about the transaction.
“We see Majesco as a leader in helping its insurance customers get to the cloud faster, and modernize their internal and external facing systems,” said A.J. Rohde, a partner at Thoma Bravo.
In the quarter ended March 31, Majesco reported revenue of $37.91 million, up from $37.19 million a year earlier. Net income almost tripled to $3.6 million.