Riverbed Technology, Inc. Agrees To Be Bought By Thoma Bravo

Riverbed Technology, Inc. (NASDAQ:RVBD) announced this morning that it has struck a deal to be acquired by Thoma Bravo for $21 per share. That places a value of about $2.6 billion on Riverbed, according to the company’s press release.

Thoma Bravo to buy Riverbed Technology

The companies have signed a definitive agreement. Thoma Bravo is a private equity investment firm, and Teachers’ Private Capital, the Ontario Teachers’ Pension Plan’s private investor department, is joining the firm in acquiring Riverbed Technology.

Up-and-Coming Small- and Mid-cap Portfolio Managers #MICUS (Morningstar Conference)

InvestorsNotes from Laird Bieger of Baron Capital, Mark Wynegar of Tributary Capital Management, and Amy Zhang of Alger Funds' presentation from the 2020 Monringstar Investment Conference. Q2 2020 hedge fund letters, conferences and more Up-and-Coming Small- and Mid-cap Portfolio Managers Our manager research team has been publishing its semiannual Morningstar Prospects report for several years. Read More

Shareholders of Riverbed will receive $21 per share in cash. Riverbed’s board of directors unanimously approved the deal after reviewing the company’s strategic and financial alternatives, which were announced in October.

Thoma Bravo’s biggest investment ever

Thoma Bravo managing partner Seth Boro said the acquisition of Riverbed Technology is the firm’s biggest ever. He added that the acquisition continues their “emphasis on and confidence in companies that deliver mission-critical technologies for an expanding, global customer base.”

“Riverbed’s strong product portfolio provides unmatched optimization, visibility and control across the hybrid enterprise, which has positioned the Company extremely well in a rapidly-changing landscape,” said Thoma Bravo managing partner Orlando Bravo in a statement this morning. “We look forward to working with the talented team at Riverbed to strengthen their leadership position and the value they deliver to customers. All of us at Thoma Bravo are excited to help Riverbed reach its full potential.”

Riverbed CEO to remain at the helm

Under the terms of the deal, Riverbed CEO Jerry Kennelly will remain CEO at the firm. The companies expect the deal to close in the first half of next year, although it is subject to the approval of Riverbed shareholders and regulators. The transaction will be scrutinized by antitrust regulators in the U.S., Taiwan and Germany. The companies did not assign any financing conditions as part of the agreement.

Qatalyst Partners and Goldman Sachs Group, Inc. (NYSE:GS) advised Riverbed on the financial side of the deal, while Wilson Sonsini Goodrich & Rosati advised the firm on the legal side. Thoma Bravo’s legal advisor was Kirkland & Ellis.

Shares of Riverbed Technology surged more than 8% during regular trading today.