Open Solutions Inc., a software company specializing in products for financial institutions, announced Monday it is being sold to private investors for $785 million, plus the assumption of debt.

Providence Equity Partners and The Carlyle Group plan to pay $38 for each share of Open Solutions common stock, which amounts to a 32 percent premium over the average closing price in the last 30 days. The shares had closed Friday at $30.28 on the Nasdaq Stock Market.

Open Solutions stock was at $37.66, up $7.38 or 24 percent, in afternoon trading Monday.

The agreement also lets holders of Open Solutions' debt to convert their bonds into stock, potentially valuing the total deal at $1.3 billion.

Open Solutions' software includes accounting, banking and cash management programs as well as Web hosting and design services for financial institutions.

Founded in 1992, Open Solutions has 1,700 employees in nearly two dozen offices around the country as well as in Canada and India.

The transaction is expected to be completed in the first quarter of 2007, subject to approval by stockholders and federal regulators.

"This is yet another exciting chapter for Open Solutions as we continue our efforts to revolutionize the financial services sector," said Open Solutions Chairman Louis Hernandez Jr.