Shares of Marketo Are Soaring After It Found a Buyer

May 31, 2016, 3:11 PM UTC
Courtesy of Marketo

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.

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