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Marketo agrees to $1.79 billion sale; shares halted

Chairman and CEO of Marketo Phil Fernandez.
Elijah Nouvelage | Reuters
Chairman and CEO of Marketo Phil Fernandez.

Marketing software maker Marketo said Tuesday it agreed to be bought out by Vista Equity Partners, a private equity firm based in San Francisco.

Vista will buy all of Marketo's shares for $1.79 billion, or $35.25 per share, representing a 64 percent premium to the stock's May 9 closing price. Trading in Marketo's stock was halted for news pending at 9 a.m.

"The acquisition will allow Marketo to continue to focus on customer success and to remain the independent category leader, continuing to set the agenda for product innovation and thought leadership for the entire digital marketing industry," Phil Fernandez, Marketo's chairman and CEO, said in a statement.

Entering Tuesday's session, Marketo's stock was up 12 percent for the year and nearly 91 percent over the past three months.

MKTO 3-month chartSource: FactSet