Marketo (MKTO), a maker of cloud-based marketing software, said on Tuesday it agreed to be bought by private equity firm Vista Equity Partners, in a cash deal valued at about $1.79 billion.
Vista Equity will pay $35.25 per share for Marketo, representing a 9.5% premium to the company’s closing price on Friday.
Earlier in May, Bloomberg had reported that the company was working with Morgan Stanley to explore strategic alternatives including a potential sale.
Shares of Marketo, which have risen 12.2% this year, shot up more than 9% Tuesday morning.
The company’s shares have been rising after JMP Securities said in a research note that the company had given presentations to SAP and Microsoft (MSFT) about a potential sale.
Morgan Stanley is Marketo’s financial adviser for the Vista deal and Wilson Sonsini Goodrich & Rosati is its legal adviser.
Kirkland & Ellis is Vista’s legal counsel.
Marketo headquarters will remain in San Mateo, California, after the deal closes in the third quarter of 2016.
