CEC Entertainment, which owns the Chuck E. Cheese chain, announced Thursday that it has agreed to be purchased by private firm Apollo Global Management for $950 million, the Associated Press reported. 

Apollo will pay $54 per share for CEC Entertainment Inc, which is a 12 percent increase to the company's Wednesday closing price of $48.43. The deal is valued at about $1.3 billion, including debt. According to FactSet, CEC has approximately 17.6 million outstanding shares.

Apollo will take over the company, which has 577 kid-themed restaurants in 47 states and 10 foreign countries or territories. The CEC chain has been suffering from dropping sales and the private equity firm is known for fixing struggling businesses and then reselling them years later.

"We are excited about this transaction with Apollo, as it recognizes the value of CEC's global brand, strong cash flows and growth prospects while providing our shareholders with an immediate and substantial premium," Michael H. Magusiak, the chief executive of CEC, said in a statement.

Founded in 1997, Chuck E. Cheese presented its singing robotic animals and videogame theme. According to USA Today, the company reportedly failed to evolve through time, to meet the needs of parents and their children, despite various changes, such as the makeover of its rodent mascot in 2012.

"While Chuck E. Cheese has left a mark on American culture, it appears to have lost its way," Jason Wright, in marketing with the VIA Agency, told USA Today. "They never seem to update, revise, or re-brand."

USA Today compared CEC with Disney, who have done well in meeting the needs of both parents and kids.

"Parents don't enjoy it so much - so it's hard to get them in the door," Lynne Collier of the investment firm Sterne Agee told USA Today, adding that the key may be in providing entertainment for the parents. "But it's a good brand, it's not completely broken."  

The AP reported that CEC can still go looking for better offers through Jan. 29.