Mindbody shareholders will receive $36.50 per share in cash, representing a premium of about 68 percent to the company's closing price as of Friday. The stock was trading at $36.30 before the opening bell.

Since it went public in June 2015, the maker of business management software for fitness boutiques, spas and beauty salons has generated a steady rise in revenue. For 2017, it reported revenue of $182.6 million.

The deal includes a 30-day "go-shop" period, which allows Mindbody's board and advisers to consider alternative offers, the company said.

Vista, whose portfolio comprises mostly software companies, bought software company Apptio Inc last month for $1.94 billion in cash.

The deal has been approved by the company's board and is expected to close in the first quarter of 2019.

Qatalyst Partners was financial adviser for Mindbody, while Cooley LLP was the legal adviser. Kirkland & Ellis LLP served as legal adviser to Vista.

(Reporting by Akanksha Rana in Bengaluru; Editing by Saumyadeb Chakrabarty)