Riverbed to acquire OPNET Technologies
Acquisition is designed to extend Riverbed’s NPM business into the APM market
Riverbed Technology has entered into a definitive agreement to purchase application and network performance solutions provider OPNET Technologies for $43 per share in cash and stock, representing an equity value of $1 billion and an enterprise value of $921 million.
The acquisition is designed to enable Riverbed to extend its network performance management (NPM) business into the multi-billion dollar application performance management (APM) market. The combination of Cascade and OPNET is designed to create a new force in the converged market for NPM and APM, with over $250 million in annualised revenue.
"The addition of OPNET establishes Riverbed as the clear leader in the high-growth and converging application and network performance management markets," said Jerry Kennelly, chairman and CEO at Riverbed. "This acquisition also transforms Riverbed into a billion dollar revenue company."
The addition of OPNET's broad-based family of APM products will enhance Riverbed's position in the NPM market. This acquisition is designed to enable Riverbed to provide customers with a unique integrated solution that not only monitors network and application performance, but also accelerates it.
"Riverbed and OPNET have natural synergies," said Marc Cohen, OPNET's chairman and CEO. "Riverbed's leadership in accelerating business technology combined with OPNET's industry-leading suite of APM products provides customers with a single solution for monitoring, troubleshooting and actually fixing the application and network performance problems challenging them today."
OPNET will be combined with Riverbed's Cascade business unit. The transaction is expected to be accretive to Riverbed's 2013 earnings per share on a non-GAAP basis. Leveraging the Riverbed brand, channels and infrastructure, Riverbed expects meaningful revenue and operating synergies in 2014.