Private-equity firm Thoma Bravo and a Canadian teachers pension fund will pay about $3.6 billion to take Riverbed Technology Inc. private a couple of 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% premium to the stock's closing price Friday of $18.74
Riverbed Technology had said in October that its board would review ways to enhance shareholder value, and that it planned to cut costs by up to $25 million to help improve its annual operating profit.
In January, Riverbed rejected 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% stake, according to FactSet.
Elliott executive Jesse Cohn said Monday that his firm was "delighted" with the latest buyout offer and that it commended 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 $1.57, or 8.4%, to close at $20.31 on Monday.