Texas firm Vista Equity to pay $1.8B for software maker

robertsmithvistaequitypartners

Vista Equity Partners LLC, led by CEO Robert Smith, is buying a pair of software companies: California’s Marketo Inc. and Colorado’s Ping Identity Corp.

via Christopher Calnan, Austin Business Journal

Vista Equity Partners LLC has reached an agreement to acquire software maker Marketo Inc. for $1.79 billion.

The Austin technology-focused private equity investment firm reached a deal to buy all outstanding shares of Marketo (Nasdaq: MKTO) for $35.25 per share, a 64 percent premium to the May 9 trading price. The transaction is expected to close in the third quarter, according to a Marketo statement.

California-based Marketo, which was founded in 2007, develops engagement marketing software. The company, which employed 949 workers in late 2015, reported revenue of $209.8 million last year.

Vista Equity, which was founded in 2000, operates offices in Austin, Chicago and San Francisco. It has completed more than 170 transactions worth more than $45 billion. The firm, which focuses on investing in tech businesses and is one of Austin’s most prolific private equity firms, reportedly plans to raise a new $2.5 billion fund.

Separately, Denver-based Ping Identity Corp. on Wednesday disclosed that Vista Equity plans to buy the company for an undisclosed amount. Ping, founded in 2002, develops software designed to enable companies to authenticate the identities of employees logging into computer networks and software applications. The company is expected to reach $100 million in revenue this year, the Denver Business Journal reported.

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