RealPage Inc.’s shares surged as much as 32% after private equity giant Thoma Bravo agreed to buy out the real estate software maker for $9.6 billion.

Thoma Bravo is offering investors $88.75 in cash for each share of RealPage, the companies said in a statement on Monday. The transaction represents a 31% premium to the company’s closing share price on Dec. 18 and values the company at $10.2 billion including debt.

The software company’s stock rose 30% to $88.50 at 9:52 a.m. in New York after earlier touching $89.20, a record high for the shares.

RealPage, a maker of software for managing rental properties, had risen more than 26% this year through Friday—outpacing a 15% gain in the S&P 500 —after the pandemic spurred the adoption of online and digital services over in-person alternatives. The company in November hiked its earnings per share forecast for the year after reporting quarterly revenue ahead of expectations. It’s now valued at about 35 times estimated earnings, versus 26 for the benchmark index.

RealPage’s executive team in Richardson, Texas, including Chief Executive Officer Steve Winn, are expected to continue leading the company after the deal closes, the companies said in the statement.

The acquisition would be the biggest to date for Thoma Bravo, which manages more than $73 billion. It’s carved out a niche within the buyout industry, focusing on cloud software businesses that draw steady, recurring sales.

The firm typically makes operational tweaks to the companies it acquires, usually keeping management in place and concentrating on growth rather than cost cutting. It’s a model that’s proved remarkably lucrative, particularly during the coronavirus pandemic. It said in October it had raised three funds totaling more than $22.8 billion.

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