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RealPage Shares Surge on Thoma Bravo Buyout Deal

RealPage shares jump more than 30% after it agrees to be bought by private-equity firm Thoma Bravo in a deal that values RealPage at $10.2 billion.

Shares of RealPage  (RP) - Get RealPage, Inc. Report surged on Monday after the property management software provider agreed to be bought by private-equity firm Thoma Bravo in a deal that values RealPage at about $10.2 billion including debt.

RealPage shares jumped more than 30% on Monday after Thoma Bravo announced it struck a deal to buy Richardson, Texas-based RealPage for $88.75 a share, a 31% premium to RealPage’s closing price Friday of $67.83. 

Upon completion of the transaction, which is expected to be in the second quarter of 2021, RealPage expects to continue operating under the leadership of Chairman and CEO Steve Winn and the existing RealPage leadership team.

The deal highlights one of the positive side effects of the coronavirus pandemic: a pervasive shift to technology and software. RealPage provides a technology platform used by owners and managers of rental properties that allows tenants to submit maintenance requests and even pay their rent.

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It also highlights one of the surprise winning sectors in the pandemic - real estate itself - which despite plunges in demand for retail and office space has witnessed strong gains in residential rental, commercial, industrial and other areas in the past 10 months.

The deal “will enhance our ability to focus on executing our long-term strategy and delivering even better products and services to our clients and partners,” Winn said in a statement. Once finalized, RealPage will go private, and its stock will no longer be listed on the Nasdaq.

Thoma Bravo, based in San Francisco and Chicago and led by managing partner Orlando Bravo, manages more than $70 billion in assets. That includes $22.8 billion it finished raising in October for three separate vehicles, according to the Journal.

Shares of RealPage were up 31.02% at $88.87 in trading on Monday.