Thoma Bravo, a leading private equity investment firm, and Teachers’ Private Capital, the private investor department of Ontario Teachers’ Pension Plan, have completed their acquisition of application performance infrastructure provider Riverbed Technology.
The acquisition is valued at approximately US$3.5 billion, with Riverbed stockholders receiving US$21.00 per share in cash. With the transaction’s close, Riverbed stock has ceased trading on the NASDAQ under the ticker symbol RVBD.
“Riverbed is a clear industry leader and significant addition to our portfolio of software companies,” says Seth Boro, a managing partner, Thoma Bravo.
“Our team is looking forward to building upon Riverbed’s world class customer support and delivering its market-leading product portfolio to even more enterprise customers.”
With this acquisition now complete, Jerry Kennelly, chairman and CEO of Riverbed, believes the team can begin to move forward with the strategic initiatives that will take the company to the next stage of growth.
“As a private company, Riverbed is better positioned to pursue our long term goals, and has greater flexibility to develop best-of breed technologies that deliver superior application performance for our customers,” he explains.
“This flexibility, alongside Thoma Bravo’s deep experience growing companies in the application performance space, makes us very excited about the future.”
Riverbed, at more than $1 billion in annual revenue, is one of the market leaders in Application Performance Infrastructure, delivering platforms for the hybrid enterprise.
“We’re pleased to have the opportunity to partner with Jerry and the entire Riverbed team,” adds Robert Sayle, partner, Thoma Bravo.Read more: Riverbed may go private in a $3 billion deal
“The application performance sector is poised to see even greater advances in the coming years, and we look forward to helping Riverbed realise its tremendous growth potential.”
For Riverbed, Qatalyst Partners and Goldman, Sachs & Co. served as financial advisors, and Wilson Sonsini Goodrich & Rosati, Professional Corporation served as the company’s legal advisor.
Kirkland & Ellis served as legal advisor to Thoma Bravo; and Barclays, Citigroup, Credit Suisse and Morgan Stanley served as financial advisors on the transaction.