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December 16, 2014

Riverbed to be acquired for $3.6bn

Company to be acquired by Thoma Bravo and Teachers' Private Capital.

By CBR Staff Writer

Riverbed Technology has agreed to be acquired by private equity investment firm Thoma Bravo, and Canadian pension group Teachers’ Private Capital for $3.6bn.

Riverbed chairman and CEO Jerry Kennelly said: "We are extremely pleased with this transaction, which we believe will be a winning proposition for all of our stakeholders."

"Having undertaken a thorough strategic review, during which we assessed a wide variety of options to maximize value, the Board unanimously concluded that partnering with Thoma Bravo was the best choice for Riverbed, as this transaction will provide our stockholders with significant and immediate cash value."

"With the benefit of Thoma Bravo’s knowledge and insights, combined with the added flexibility we will have as a private company, Riverbed will be able to focus on reaching the next level of growth, which will benefit our employees, customers and partners."

The latest transaction comes just over a year after Riverbed’s major investor Elliott Management started hinting for a possible sale, citing a slump in its key wide-area network optimisation business and its struggle to integrate software maker Opnet.

Supporting the transaction, Elliott Management US Equity Activism head Jesse Cohn said: "As Riverbed’s largest shareholder, we’re delighted with this outcome that gives shareholders immediate, premium value."

"Elliott offered to buy Riverbed nearly one year ago and we commend Jerry and the rest of Riverbed’s board for taking this bold step.

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"Thoma Bravo has also proven once again that they are a great partner for technology companies seeking their next phase of growth outside the public markets. Congratulations to all."

Upon the transaction, set to end by the first half of 2015, Riverbed stockholders will receive $21 a share in cash and Kennelly will continue to be on same role at Riverbed.

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