Thoma Bravo to buy software firm RealPage for US$10.2b

[WASHINGTON] Private equity giant Thoma Bravo has agreed to buy out US real estate software firm RealPage for about US$10.2 billion including debt.

Thoma Bravo is offering investors US$88.75 in cash for each share of RealPage, the companies said in a statement on Monday. The bid is a 31 per cent premium to RealPage's closing share price on Dec 18.

RealPage, a maker of software for managing rental properties, has risen more than 26 per cent this year - outpacing a 15 per cent gain in the S&P 500 - after the pandemic spurred the adoption of online and digital services over in-person alternatives. The company in November hiked its earnings per share forecast for the year after reporting quarterly revenue ahead of expectations. It's now valued at about 35 times estimated earnings, versus 26 for the benchmark index.

RealPage's executive team in Richardson, Texas, including chief executive officer Steve Winn, are expected to continue leading the company after the deal closes, the companies said in the statement.

The acquisition would be the biggest to date for Thoma Bravo, which manages more than US$73 billion. It's carved out a niche within the buyout industry, focusing on cloud software businesses that draw steady, recurring sales.

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