Thoma Bravo Acquiring RealPage (RP) For $10.2 Billion: Details About The Deal

By Amit Chowdhry ● December 21, 2020
  • RealPage, Inc. (NASDAQ: RP) — a leading global provider of software and data analytics to the real estate industry — announced it has entered into a definitive agreement

RealPage, Inc. (NASDAQ: RP) — a leading global provider of software and data analytics to the real estate industry — announced it has entered into a definitive agreement to be acquired by Thoma Bravo in an all-cash transaction that values RealPage at approximately $10.2 billion, including net debt. And under the terms of the agreement, RealPage stockholders will receive $88.75 in cash per share of RealPage common stock upon closing of the transaction. 

The purchase price represents a premium of 30.8% over RealPage’s closing stock price of $67.83 on December 18, 2020 — a premium of 36.5% over RealPage’s 30-day volume-weighted average share price through that date and a premium of 27.8% over RealPage’s all-time high closing stock price of $69.47 on December 7, 2020. 

The RealPage Board of Directors unanimously approved the agreement with Thoma Bravo and recommends that RealPage stockholders vote in favor of the deal at the special meeting of RealPage stockholders to be called in connection with the transaction.

Upon the completion of the deal, RealPage expects to continue operating under the leadership of Chairman and CEO Steve Winn and the existing RealPage leadership team based in Richardson, Texas.

RealPage could terminate the merger agreement to accept a superior proposal during the go-shop period, subject to the terms and conditions of the merger agreement. But there can be no assurances that this process will result in a superior proposal and RealPage does not intend to disclose developments with respect to this solicitation process unless and until RealPage’s Board of Directors makes a determination requiring further disclosure.

The parties expect the deal to close in Q2 2021. Upon completion of the deal, RealPage will become a privately held company, and its common stock will no longer be listed on the NASDAQ stock market.

The closing of the transaction is subject to customary conditions

KEY QUOTES:

“We believe this transaction will provide immediate and substantial value to RealPage stockholders, reflecting the tremendous work that our employees have done to build this company. I am immensely proud of that work and also pleased that the transaction will provide us the opportunity to work with Thoma Bravo, a firm with tremendous software investment and operational capabilities. This will enhance our ability to focus on executing our long-term strategy and delivering even better products and services to our clients and partners.”

— Steve Winn, Chairman of the Board and Chief Executive Officer of RealPage

“RealPage’s industry leading platform is critical to the real estate ecosystem and has tremendous potential going forward. Our firm has a track record of acquiring cutting edge software providers to specialized industries and driving their innovation and growth while remaining true to their core business and customers. Together, RealPage and Thoma Bravo can partner to grow the company’s market offerings and enhance its current capabilities to capitalize on the increasingly complex and expanding real estate market.”

— Orlando Bravo, Founder and a Managing Partner of Thoma Bravo

“We are thrilled to partner with Steve and the RealPage team at this exciting milestone in the company’s journey. As technology transformation takes on increasing importance in the real estate industry, RealPage’s diverse and innovative portfolio of products and solutions puts the company in prime position to accelerate its market leadership. We look forward to applying Thoma Bravo’s operational and investment expertise in software to help drive RealPage’s continued growth and identify attractive M&A opportunities.”

— Scott Crabill, a Managing Partner at Thoma Bravo