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Infoblox Inc. (NYSE: BLOX) watched its shares make a handy gain on Monday after an acquisition agreement was announced. The company said that it has entered into a definitive agreement to be acquired by Vista Equity Partners. The transaction is expected to close in Infoblox’s fiscal second quarter and is still subject to customary closing conditions and regulatory approval.

Under the terms of the agreement, Infoblox stockholders will receive $26.50 per share of common stock in cash, which represents a 33% premium to Infoblox’s average closing share price over the past 60 trading days, and a 73% premium to Infoblox’s unaffected closing price as of May 11, 2016, when media reports of interest in acquiring Infoblox were first published.

On the broad scope, the transaction values Infoblox at roughly $1.6 billion. The agreement was unanimously approved by Infoblox’s board of directors.

The transaction will be effected by means of a tender offer followed by a merger, and the Infoblox board unanimously recommends Infoblox stockholders tender their shares in the offer.

Infoblox will maintain its corporate headquarters in Santa Clara, California, and continue to be led by its current executive team.

Jesper Andersen, president and CEO of Infoblox, commented:

Vista has an excellent track record of supporting and adding value to technology companies, and we are thrilled to bring on a partner of their caliber and strategic expertise. This transaction will provide immediate and substantial value to Infoblox stockholders, while also giving Infoblox greater flexibility to execute on our long-term strategy to drive increased DDI automation and DNS security into the enterprise market. We are excited to begin our partnership with Vista and look forward to leveraging their operational insights as we continue to deliver the industry-leading products, solutions and customer service on which our customers rely.

Excluding Monday’s move, Infoblox has outperformed the broad markets, with the stock up 24% year to date.

Shares of Infoblox traded up 15% at $26.25 Monday morning, with a consensus analyst price target of $22.94 and a 52-week trading range of $13.22 to $26.29.