Event management software maker Active Network Inc ACTV.N will be acquired by private equity firm Vista Equity Partners in a deal valued at about $904 million, a little more than two years after it went public.
Vista Equity will make a tender offer of $14.50 per share, representing a 27.2 percent premium to Active Network's Friday closing.
The stock was trading at $14.39 before the bell.
The company, whose customers include Cisco Systems Inc (CSCO.O), IBM Corp (IBM.N), Starbucks Corp (SBUX.O) and audio company Bose Corp, has not made an annual profit in its 15 years of existence.
Active Network's software helps users reserve campsites, sign up for marathons and buy fishing or hunting licenses. The company gets most of its revenue from registration and reservation fees paid by participants.
Walt Disney Co (DIS.N) holds a 10 percent stake in Active Network and IAC/InterActivecorp (IACI.O) owns 7.4 percent.
Active Network had 61.68 million shares outstanding as of May 15, according to the company's latest filing.
Vista Equity, which invests mainly in software companies and has about $7 billion in capital commitments, has acquired three other companies this year.
It bought security software vendor Websense Inc WBSN.O for $907 million in May and acquired chipmaker Qualcomm Inc's (QCOM.O) fleet management software unit, Omnitracs Inc, for about $800 million in August.
It offered to take medical software provider Greenway Medical Technologies Inc GWAY.N private for $644 million last week.
Active Network is being advised by Citi, while BofA Merrill Lynch is the financial adviser to Vista Equity.
BofA Merrill Lynch, RBC Capital Markets, and BMO Capital Markets Corp will provide debt financing for the deal.
(Reporting by Sruthi Ramakrishnan and Chandni Doulatramani in Bangalore; Editing by Kirti Pandey)