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Shares of Marketo Are Soaring After It Found a Buyer

Marketo CEO Phil Fernandez addresses customers at his company's conference in 2015.Marketo CEO Phil Fernandez addresses customers at his company's conference in 2015.
Marketo CEO Phil Fernandez addresses customers at his company's conference in 2015.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.