Shares of QAD (QADA) - Get Report surged as the provider of integrated software solutions for manufacturers agreed to be acquired by private-equity firm Thoma Bravo for $87.50 a share, or $2 billion, cash.
Shares of the Santa Barbara, Calif., company at last check were 19% higher at $86.72.
Terms of the agreement with the Chicago software-focused PE firm call for Anton Chilton to continue as QAD's chief executive.
Pamela Lopker, who founded QAD in 1979 and is president, will retain a "significant" ownership stake in QAD and remain on the board, the companies said.
A committee of QAD's independent directors approved the terms.
The companies hope to close the deal in the fourth quarter, subject to conditions including a vote of holders of a majority of the stock not held by Lopker and other directors and officers of QAD.
William Blair analyst Bhavan Suri downgraded QAD to market perform from outperform after the company announced the agreement, according to the Fly.
The announcement is the latest in a series of acquisitions by Thoma Bravo.