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Blue Coat accepts $1.1bn PE bid

Blue Coat to go private through private equity firm deal

Blue Coat will go private in the $1.1bn cash deal.
Blue Coat will go private in the $1.1bn cash deal.

Cyber security specialist Blue Coat is to be acquired by a private equity firm for $1.1bn.

The company has announced its acceptance of the offer from private equity form Thoma Bravo, to take it private.

Thoma Bravo has offered $25.81 per share, a 48% premium over Blue Coat's share price at close on the Nasdaq on Thursday.

Blue Coat has seen its share price drop by 41% this year due to falling sales, and it also faces a probe from the US government over the use of its products in Syria, in violation of the US trade embargo.

The deal has the Blue Coat board of directors approval, but will need regulatory and shareholder consent.

"Over the last six months, our Board of Directors engaged in a comprehensive review of all strategic options available to Blue Coat," said David W Hanna, chairman of the Board, Blue Coat Systems. "After an extensive evaluation of strategic alternatives with our independent advisors, the Board has determined that the definitive agreement with Thoma Bravo provides an attractive all-cash valuation to our shareholders. We look forward to completing the transaction under the terms of the agreement as expeditiously as possible."