Riverbed Technology accepts $3.6B takeover bid

By The Associated Press | Posted - Dec. 15, 2014 at 8:32 a.m.



This archived news story is available only for your personal, non-commercial use. Information in the story may be outdated or superseded by additional information. Reading or replaying the story in its archived form does not constitute a republication of the story.

SAN FRANCISCO (AP) — Private equity firm Thoma Bravo and a Canadian teacher pension will pay about $3.6 billion to take Riverbed Technology private a couple months after the computer networking equipment maker promised a thorough review of its business.

The San Francisco company said Monday that its stockholders will receive $21 in cash for each share from Thoma Bravo and the Ontario Teachers' Pension Plan. That represents a 12 percent premium to the stock's closing price Friday of $18.74

The company's shares jumped more than 9 percent after the deal was announced.

Riverbed Technology Inc. had said in October that its board would review ways to enhance shareholder value, and it planned to cut costs by up to $25 million to help improve its annual operating profit.

The company had rejected in January a $3.08 billion buyout offer from Elliott Management, saying it undervalued the company.

Elliott is one of Riverbed's biggest shareholders, with a 9.6 percent stake in the company, according to FactSet.

Elliott executive Jesse Cohn said in a separate statement Monday that his firm was "delighted" with the latest buyout offer, and they commend Riverbed's board for "taking this bold step."

Thoma Bravo focuses on technology-related investments. It said in September that it would spend about $2.5 billion to buy Compuware and take the software developer private.

Riverbed shareholders and government regulators still need to approve the deal, which is expected to close in the first half of next year.

Shares of Riverbed jumped 9.1 percent, or $1.71, to $20.45 Monday in morning trading, as broader trading indexes started off nearly flat. The stock had climbed only about 4 percent so far this year, as of Friday.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

The Associated Press

    SIGN UP FOR THE KSL.COM NEWSLETTER

    Catch up on the top news and features from KSL.com, sent weekly.
    By subscribing, you acknowledge and agree to KSL.com's Terms of Use and Privacy Policy.

    KSL Weather Forecast