Shares of data analytics firm Medallia (MDLA) - Get Medallia, Inc. Report were rising slightly after the company agreed to be acquired by Thoma Bravo, a leading software investment firm, in an all-cash, $6.4 billion acquisition.
Thoma Bravo is taking San Francisco-based Medallia private through the deal about two years after it went public.
"We are eager to build on our success and begin the next phase of differentiated growth, and we believe that becoming a private company represents the best opportunity to do just that," said Medallia Chief Executive Leslie Stretch.
Shareholders of Medallia will receive $34 a share in cash, a nearly 20% premium over the stock's closing price on June 10, the last day of trading before media reports about a potential deal started to circulate.
Medallia was approached with an unsolicited acquisition which led to a review process from Medallia's board of directors, evaluating the company as an independent entity and other strategic alternatives.
Medallia's deal with Thoma Bravo is expected to close later this year and includes a 40-day "go-shop" period when the company can consider competing deals.
Medallia shares were rising 0.6% to $33 in trading Monday.
Thoma Bravo has been busy with acquisitions recently.
Earlier this month, Thoma Bravo acquired Stamps.com for $6.6 billion in cash in a deal that the two companies expect to close this quarter.
In April, the firm also took Proofpoint private in a deal that valued the cybersecurity group at more than $12 billion.
Thoma Bravo is one of the world's largest software focused private-equity firms with more than $78 billion in assets under management.