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NEW YORK (CNNMoney.com) -- Gymboree's stock surged 23% Monday after the children's apparel retailer agreed to be bought out by private equity firm Bain Capital for $1.8 billion.
Shares of Gymboree (GYMB) climbed as high as $65.18, just below the $65.40 shareholders will receive for each outstanding share under the terms of the deal.
That represents a 57.4% premium to the company's share price on Sept. 30, when the Wall Street Journal first reported that the San Francisco-based retailer was shopping for private equity firm buyers.
From the start of the chatter through the days leading up to the buyout announcement, Gymboree's stock climbed 27.5%.
Shares of rival Carter's Inc. (CRI) spiked nearly 3% on the Gymboree's news, while Children's Place Retail Stores (PLCE) gained 4.5%.
"Gymboree got a very nice valuation, so that's providing a lift for the whole group," said Lee Giordano, analyst at Imperial Capital.
Gymboree expects the deal to close by the end of the year. 
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