- Shares gain 9% in New York Tuesday after 11% gain Friday
- Vista offered $35.25 a share in cash, a 64% premium to May 9
Marketo Inc. will be bought by Vista Equity Partners in a deal valued at about $1.79 billion, Marketo said in a statement.
Vista Equity offered $35.25 a share in cash to Marketo shareholders, representing a 64 percent premium to the closing price on May 9, the day before Bloomberg reported the company was working with Morgan Stanley to explore its options.
“After careful consideration and deliberation, our Board of Directors unanimously concluded that the sale of Marketo to Vista Equity Partners was in the best interest of Marketo and its shareholders,” said Phil Fernandez, chairman and chief executive officer of Marketo.
Marketo will remain based in San Mateo, California. The deal is subject to shareholder and antitrust approval and is expected to close in the third quarter, the company said. Marketo jumped 9 percent to $35.15 at 10:31 a.m. in New York Tuesday. The stock rose 11 percent Friday amid reports a bid was imminent.
Vista is currently raising its sixth fund with a hard cap of $10 billion -- its largest buyout pool to date.
Morgan Stanley is serving as financial adviser to Marketo, and Wilson Sonsini Goodrich & Rosati is serving as legal adviser. Vista’s legal adviser is Kirkland & Ellis LLP.