Vector Capital is taking Saba Software (OTC PINK: SABA)private in a $390 million deal.

Redwood Shores, California-based Saba Software develops cloud-based software for companies looking to hire employees.

The purchase price works out to $9 per share. Saba's shares closed at $8.80 on Feb. 10, before the deal was announced. Shares were trading at about $8.55 on the morning of Feb. 11.

Saba said in filings with the U.S. Securities and Exchange Commission that while it was working on Nasdaq restatement, it was evaluating strategic alternatives, including a sale.  The company was delisted as a result of accounting issues. 

Vector Capital is a technology focused private equity firm based in San Francisco. In July, the firm acquired IPValueManagement Inc., an intellectual property service provider, for an undisclosed amount. Vector won Mergers & Acquisitions M&A Mid-Market Seller of the Year Award for 2013. 

Morgan Stanley & Co. LLC and Morrison & Foerster are advising Saba on the deal. Shearman & Sterling LLP is Vector's legal counsel.

Private equity firms have been picking up software companies for a while, especially as the technology transitions to the cloud. Venture capital-backed Nimboxx acquired cloud-software developer Verde earlier in February, and before that, in January, TA Associates bought a majority stake in Access Technology Group.  For more, see Plugging Into Software.