Shares of Marketo Surge on Vista Equity Purchase

Shares of Marketo are up nearly double digits in Tuesday's trading session after Vista Equity Partners said it would acquire the company for $1.8 billion.
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Shares of Marketo (MKTO) are up nearly double digits in Tuesday's trading session after Vista Equity Partners said it would acquire the company for $1.8 billion. The private equity firm will pay $35.25 a share in cash for the marketing software maker. Marketo CEO Phil Fernandez says the acquisition will enable the company to deliver its mission to give marketers and C-suite executives an ultra-high-scale enterprise platform for customer engagement. The deal is expected to close in the third quarter of this year, but it must still be approved by Marketo shareholders. Speculation about a possible takeover had prompted RBC Capital Markets to downgrade Marketo shares to SECTOR PERFORM, prior to Vista Equity's announcement. Shares of Marketo are up nearly 23 percent this year.

This article was written by a staff member of TheStreet.