Subprime lender Accredited Home Lenders Holding Co. (NASDAQ: LEND) said Monday that it agreed to be acquired by a private equity firm for $400 million.

Dallas-based buyout firm Lone Star Fund V L.P., a part of Lone Start Funds, said it would buy the lender for $15.10 per share, placing a 9.7 percent premium over the company's Friday closing price of $13.76.

The sale comes two months after the company said it was exploring strategic options.

After a careful analysis, we believe this agreement is the best alternative available to protect shareholder value and provide the capital we need to support the Company's business over the long-term, James A. Konrath, chairman and chief executive officer of Accredited.

the company has had trouble getting funding as the mortgage lending industry to people with poor credit histories struggles. As a result, the company cut 1,300 jobs in the first quarter.

In April rival New Century Financial Corp. filed for bankruptcy protection after creditors refused to continue providing so-called warehouse funding for loans that it planned to sell.

Accredited's Board of Directors unanimously approved the sale to Lone Star after a special committee of independent directors recommended the deal.

Accredited Home executives will keep their current roles. The transaction is expected to close in the third quarter.

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