According to the company, its board of directors in consultation with its financial and legal advisors will comprehensively evaluate Elliott’s offer as part of its commitment to creating superior shareholder value. However, the company pointed out that it gives no assurance that Elliott’s proposal or any transaction will be consummated.
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Elliott pointed out that its offer to acquire the company represents an “undeniably premium value” that is significantly higher than the unaffected stock price of Riverbed Technology, Inc. (NASDAQ:RVBD) $16 to $17 per share.
Riverbed Technology strategic plan
Riverbed Technology, Inc. (NASDAQ:RVBD) said it will consider its current strategic plan, growth initiatives, and recent performance during the review process.
The company said it is executing on a strategy to accelerate growth as it captures a bigger share of the much larger market for Application Performance Infrastructure with a TAM of more than $11 billion, and deliver value for all of its shareholders.
“As evidence of the early traction we have achieved with our strategy, we recently reported strong fourth quarter results, with sales exceeding our expectations across all major product lines and geographies, as well as an improved outlook for the first quarter of fiscal 2014,” states Riverbed Technology, Inc. (NASDAQ:RVBD).
Riverbed Technology recent financial results
During the fourth quarter of 2013, Riverbed Technology, Inc. (NASDAQ:RVBD) generated non-GAAP net income of $51 million or $0.31 earnings per diluted share compared with $46 million net income or $0.29 earnings per diluted share in the same period a year earlier. Its revenue increased by 26% to $285 million from $237 million in the year-ago quarter.
Riverbed Technology, Inc. (NASDAQ:RVBD) emphasized that it has an established track record of and commitment to returning capital to shareholders. The company said it returned more than 100% of its free cash flow to investors through shares buyback last year, and it remains committed to opportunistic share repurchases.
Riverbed Technology, Inc. (NASDAQ:RVBD) said it “does not intend to disclose developments regarding Elliott’s proposal unless and until the board determines there is a material need to update the market.”