Thoma Bravo agrees to buy RealPage for $ 9.6 billion

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Private equity firm Thoma Bravo LP has reached deal to purchase property management software provider RealPage Inc.

for $ 9.6 billion, in one of the largest debt buyouts in recent times.

Thoma Bravo is paying $ 88.75 per share for the company, a 31% premium over RealPage’s Friday closing price of $ 67.83, company officials said.

RealPage, based in Richardson, Texas, provides a technology platform used by rental property owners and managers. Tenants can pay their rent or submit a maintenance request using RealPage software. The company also maintains a real-time rental transaction database, which allows it to forecast the direction of the markets.
Its shares are up 26% this year.

“We were able to do really well during the pandemic because our industry was in a rush to go virtual, and we were one of the platforms that did that,” Steve Winn, Managing Director of RealPage, said in an interview.

Mr. Winn previously ran Computer Language Research Inc., a maker of tax software, which he sold to what is now Thomson Reuters. Corp.

in 1998. He bought a unit of the company that focused on real estate software and integrated it into what is now RealPage. The company has grown both organically and through a wave of acquisitions, closing 12 deals in the past three years.

Software has been among the most resilient industries during the Covid-19 pandemic, as companies demonstrate they will continue to pay for it even as they cut other costs. This helped technology specialist Thoma Bravo to be among the most active private equity creators of the year. RealPage would be its biggest acquisition to date.

Its price tag makes it a relatively rare debt buyout almost in the double-digit billions of dollars. While such transactions were commonplace before the 2008-09 financial crisis, they have become rarer as buyout companies are more cautious even as they find themselves on a mountain of unspent cash.

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 that he finished raising in October for three separate vehicles.

The private equity firm sold Ellie Mae Inc. in September to the owner of the New York Stock Exchange, Intercontinental Exchange Inc.

Thoma Bravo, who bought the mortgage software company for $ 3.75 billion last year, has made four times her money.

Write to Miriam Gottfried at [email protected] and Cara Lombardo at [email protected]

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