NEW YORK (TheStreet) -- Shares of Marketo (MKTO) are soaring by 8.7% to $35 on heavy trading volume Tuesday morning, after Vista Equity Partners said it will acquire the maker of marketing software in a deal valued at about $1.79 billion.
Vista Equity will pay $35.25 per share in cash for San Mateo, CA-based Marketo.
"After careful consideration and deliberation, our Board of Directors unanimously concluded that the sale of Marketo to Vista Equity Partners was in the best interest of Marketo and its shareholders," CEO Phil Fernandez said in a statement.
The transaction is expected to close in the third quarter and is subject to customary closing conditions, such as approval from Marketo shareholders and antitrust regulators.
Visa Equity is a private equity firm focused on investments in software, data and technology-enabled businesses.
Recently, Marketo has been the subject of takeover speculation, which prompted a downgrade at RBC Capital Markets earlier today before the agreement was announced.
About 1.83 million of the company's shares have been traded so far today vs. its average volume of 882,833 shares per day.
Separately, TheStreet Ratings Team has a "Sell" rating with a score of D on the stock.
The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity and weak operating cash flow.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: MKTO