Informatica Corp. (NASDAQ:INFA), a software company, stock was up on Tuesday following news of a buyout.

Private equity firm Permira and the Canada Pension Plan Investment Board are planning to acquire Informatica for $5.3 billion. This will have them paying $48.75 a piece for each of the company’s stock. The payment will be made in cash, reports The New York Times.

Informatica’s board has approved the private buyout. It’s also recommending that shareholders vote in favor of the action, which is expected to occur later this year. The buyout is a fit for Permira, which has investments in other software companies, NTY notes.

News that Informatica was looking for a buyer was first reported in January. At the time, Elliott Management, the largest shareholder of the company with an 8% stake, said that the stock was undervalued, reports Forbes.

INFA shares were up 4% as of Noon Tuesday.

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