Marketo Agrees to Sell Itself to Vista Equity Partners

Marketo Inc. said Tuesday it has agreed to be acquired for about $1.79 billion by Vista Equity Partners, a move that will take the marketing software and solutions company private.

Shares rose more than 9% to $35.23.

Marketo shareholders will receive $35.25 in cash a share, which the company said was a 64% premium to the unaffected closing price as of May 9, a day before a news report that it was exploring a sale. It is a 9% premium to the company's closing price on Friday at $32.20.

The transaction, subject to regulatory approval and other closing conditions, is expected to close in the third quarter.

The San Mateo, Calif., company's stock had declined sharply earlier this year—it ended the year at nearly $29 but fell to $14.72 in February, according to FactSet. The stock jumped sharply after Bloomberg, citing people familiar with the matter, reported on May 10 that Marketo was exploring strategic alternatives.

Marketo's solutions include mobile and email marketing, and Vista Equity, with more than $24 billion in capital commitments, investments in software, data and technology-based organizations.

Write to Joshua Jamerson at joshua.jamerson@wsj.com

(END) Dow Jones Newswires

May 31, 2016 16:55 ET (20:55 GMT)

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