Many people dream of taking a company public. That is why you build a business, in hopes of the “BIG” payout some day!!! It appears a reversal of this trend in is on the horizon.
Riverbed Technology is the latest major tech company to bow out of public trading, announcing a $3.6 billion takeover by private equity firm Thoma Bravo on Monday. The price is the highest ever paid by Thoma Bravo, and works out to $21 for each share of Riverbed currently in circulation.
The deal should close in early 2015, pending regulatory and shareholder approval. With those in hand, Riverbed would join a growing list of high-profile tech companies in going private, including Dell, BMC and Blue Coat.
Riverbed is best known for its WAN optimization hardware, an area in which the company has been consistently recognized for quality. Its recent history, however, is one of diversification, purchasing companies with related product offerings and rolling out new lines of its own.
The company had been an acquisition target for some time, rejecting a January bid by Elliot Management Corporation for around $19 per share, and a subsequently sweetened offer of $21 per share. But it had also made acquisitions of its own, most notably the billion-dollar purchase of application performance management company Opnet Technologies in 2012.
While Riverbed’s fortunes had been generally improving over the past few months, it’s still a company facing plenty of challenges. Riverbed lost more than $12 million in 2013, and although it returned to profitability over the past year, some experts believe the company has had trouble integrating Opnet, its big buy. Click Here