By Ismail Shakil
(Reuters) - Software company Apptio Inc (O:APTI) said on Sunday it agreed to be bought by private equity firm Vista Equity Partners for $1.94 billion in cash, two years after going public.
Vista will take the company private for $38 per share, a premium of about 53 percent to Apptio stock's last close.
The deal would help the company bring its products to the market faster, Apptio co-founder and Chief Executive Officer Sunny Gupta told Reuters.
"In the private construct, we look at leveraging Vista's playbook," Gupta said. "They seem to be very committed to accelerating our product innovation cycle to customers."
Apptio, whose products include cloud-based and hybrid business management software, was founded in 2007 and went public in September of 2016 at $16 per share.
Vista, whose private-equity portfolio comprises of mostly software companies, sold marketing software firm Marketo to Adobe Inc (O:ADBE) for $4.75 billion in September.
The Apptio deal includes a 30-day "go-shop" period, which allows Apptio board and advisers to consider alternative offers, the company said.
Apptio had multiple offers from strategic and private investors before it agreed to go with Vista's, Gupta said. He will remain Apptio's CEO post the deal. It will remain headquartered in Bellevue, Washington.
The company's board has approved the deal, which is expected to close in the first quarter of 2019, it said.
Apptio posted a surprise adjusted quarterly profit in August, a month before the stock touched a life high of $41.23.
Qatalyst Partners served as Apptio's financial adviser, while Wilson Sonsini Goodrich & Rosati was its legal adviser. Kirkland & Ellis LLP was the legal adviser to Vista.
The Wall Street Journal earlier reported on the deal.