Enterprise software provider Informatica Corp said it would be taken private by an consortium comprising Permira Advisers Ltd and Canada Pension Plan Investment Board (CPPIB) for about $5.3 billion.
Informatica shareholders will get $48.75 per share in cash, the company said.
Informatica’s shares rose 4% to $45.83 on the Nasdaq on Monday after Reuters reported that both Permira and CPPIB and a partnership of Thoma Bravo LLC and Ontario Teachers’ Pension Plan had submitted bids for the company.
Redwood City, California-based Informatica helps companies connect software and enterprise applications and store data.
It competes in the integration software market with Tibco, which was taken private for $4.3 billion in December by buyout firm Vista Equity Partners.
Informatica’s revenue rose 10.5% in 2014 to $1.05 billion, while its pre-tax income jumped 21% to $170.3 million.
Activist hedge fund Elliott Management Corp disclosed an 8% stake in Informatica in January and said in a regulatory filing that it was speaking to the company about ways to maximize shareholder value.
The deal is the largest leveraged buyout so far this year.
Qatalyst Partners was Informatica’s financial adviser and Wilson Sonsini Goodrich & Rosati was legal counsel.
BofA Merrill Lynch, Goldman Sachs & Co, Macquarie Capital, and Union Square Advisors LLC were financial advisers to the Permira funds and CPPIB.