Thoma Bravo to buy RealPage in $10.2bn deal

March 2021 | DEALFRONT | PRIVATE EQUITY & VENTURE CAPITAL

Financier Worldwide Magazine

March 2021 Issue

In a transformational deal for the real estate industry, software and data analytics provider RealPage has been acquired by private equity (PE) investment firm Thoma Bravo in an all-cash transaction valued at $10.2bn, including debt.

Under the terms of the definitive agreement, RealPage stockholders will receive $88.75 in cash per share of RealPage common stock upon closing of the transaction, which is expected in the second quarter of 2021.

Founded in 1998 and headquartered in Richardson, Texas, RealPage currently serves over 19 million units worldwide from offices in North America, Europe and Asia. Its technology platform enables real estate owners and managers to change how people experience and use rental space. Clients use the platform to gain transparency in asset performance, leverage data insights and monetise space to create incremental yields.

“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,” said Steve Winn, chairman and chief executive of RealPage. “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.”

Upon completion of the transaction, RealPage expects to continue operating under the leadership of Mr Winn and the existing RealPage leadership team based in Richardson, Texas. Furthermore, upon completion of the transaction, RealPage will become a privately held company, and its common stock will no longer be listed on the NASDAQ stock market.

“RealPage’s industry leading platform is critical to the real estate ecosystem and has tremendous potential going forward,” said Orlando Bravo, founder and a managing partner at Thoma Bravo. “Our firm has a track record of acquiring cutting edge software providers to specialised industries and driving their innovation and growth, while remaining true to their core business and customers.”

A leading PE firm focused on the software and technology-enabled services sectors, Thoma Bravo partners with companies’ management team to implement operating best practices, invest in growth initiatives and make accretive acquisitions intended to accelerate revenue.

“We are thrilled to partner with Steve and the RealPage team at this exciting milestone in the company’s journey,” said Scott Crabill, a managing partner at Thoma Bravo. “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.”

Acting as financial adviser to RealPage is BofA Securities, with Wachtell, Lipton, Rosen & Katz as legal counsel. Financing for the transaction is being provided by Goldman Sachs & Co. LLC, which is also serving as financial adviser to Thoma Bravo. Kirkland & Ellis LLP is serving as Thoma Bravo’s legal counsel.

Closing of the transaction is subject to customary conditions, including approval by the holders of a majority of the outstanding shares of RealPage common stock, expiration or early termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, and receipt of other required regulatory approvals.

Mr Bravo concluded: “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.”

Fraser Tennant