Gymboree agrees to $1.8 billion buyout by Bain

NEW YORK (AP) — Children's clothing retailer Gymboree Corp. has agreed to be bought by asset management firm Bain Capital for $1.8 billion in what would be the sixth-largest private equity deal of the year.

Gymboree said Monday that the deal is for $65.40 per share, a 24 percent premium to Gymboree's Friday closing stock price of $52.95. The retailer, based in San Francisco, currently has about 27.3 million shares outstanding.

Gymboree stock surged 23 percent in afternoon trading on the news.

The news did not come as a surprise, as speculation about a potential acquisition had been brewing for a few weeks. Last week a report from The New York Post said Gymboree was …