Riverbed to go private

WAN-optimisation vendor to be acquired by equity investment firm at $3.6bn valuation

Tags: Mergers and acquisitionsRiverbed Technology Incorporated
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Riverbed to go private CEO Jerry Kennelly will remain with the company in the same capacity
By  Tom Paye Published  December 16, 2014

Riverbed Technology has announced plans to go private under an agreement that will see equity investment firm Thoma Bravo acquiring the company.

According to a statement, the WAN optimisation vendor's board of directors unanimously approved the agreement, following a review of strategic and financial alternatives announced in October.

Under the agreement, Riverbed stockholders will receive $21.00 per share in cash, which values the sum of the company at around $3.6bn. The investment is the largest in Thoma Bravo's history.

"We are extremely pleased with this transaction, which we believe will be a winning proposition for all of our stakeholders," said Jerry M. Kennelly, chairman and CEO of Riverbed. 

"Having undertaken a thorough strategic review, during which we assessed a wide variety of options to maximise value, the board unanimously concluded that partnering with Thoma Bravo was the best choice for Riverbed, as this transaction will provide our stockholders with significant and immediate cash value."

The transaction is expected to close in the first half of 2015, and is subject to approval by Riverbed stockholders, as well as regulatory approvals. Kennelly will remain with the company in the same capacity, Riverbed said.

Riverbed has not yet commented on how the agreement will affect its Middle East operations.  

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