Private equity firm Vista Equity Partners said Monday it will acquire mindbody (MB), which sells cloud-based business management tools for the wellness industry, for $ 1.95 billion in cash.
View Equity said it will pay $ 36.50 per share for Mindbody, 68% premium to its closing price on Friday. Mindbody stock jumped 65% to close at 35.83 on the stock market today.
"Mindbody Co-Founder and Chief Executive Rick Stollmeyer said in a release.
"We are thrilled to provide immediate liquidity to our shareholders".
Private Equity Firms Eye Software Makers
Mindbody went public in 2015 at 14 to share. Mindbody stock hit a high of 44.60 in May. It hit a recent high of 43.85 on Sept. 25 before falling steadily over the last three months. In the September quarter, Mindbody lost 5 cents a share on sales of $ 63.8 million, up 37% from a year earlier.
Private equity firms continue to be active in the enterprise software market. Thoma Bravo has built up its computer security holdings, for example.
Thoma Bravo recently agreed to buy Imperva (IMPV) for $ 2.1 billion. It acquired security software maker Barracuda Networks for $ 1.6 billion.
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