The $1.8 billion acquisition means Bain Capital will acquire all outstanding stock of Gymboree.
"We are pleased to announce this transaction as it delivers significant value to our shareholders," Matthew McCauley, chairman and CEO of Gymboree, said.
Under the terms of the agreement, Gymboree stockholders will receive $65.40 in cash for each outstanding share of Gymboree common stock they own.
“Bain Capital is a world-class asset management firm with substantial resources and investment experience in the retail industry, and we believe they will be a great partner as we go forward as a private company," McCauley continued.
Under the terms of the agreement, it is anticipated that affiliates of Bain Capital will commence a tender offer for all of the outstanding shares of Gymboree shortly following the execution of the agreement.
Under the terms of the agreement, Gymboree may solicit acquisition proposals from third parties for a period of 40 calendar days continuing through November 20, 2010.