Procera Networks To Be Acquired By Francisco Partners; Shares Up

(RTTNews) - Procera Networks Inc. (PKT), the global Subscriber Experience company, announced that it has signed a definitive agreement to be acquired by private funds managed by Francisco Partners Management, L.P., a global technology-focused private equity firm, in an all-cash transaction valued at approximately $240 million. Francisco Partners will commence a tender offer no later than May 5, 2015 to acquire all outstanding shares of Procera's common stock for $11.50 per share in cash.

Shares of Procera Networks rose more than 20 percent in premarket trading on Wednesday.

Procera's Board has unanimously approved the deal. The parties currently expect the transaction to close in June 2015. Upon the completion of the tender offer, Francisco Partners will acquire all remaining shares through a second step merger without the need for a stockholder vote. Upon the completion of the proposed transaction, Procera will become a privately held company.

Procera also announced preliminary results for the first quarter ended March 31, 2015. The company expects revenue to be in the range of $19.5 million to $20.5 million. Procera expects gross margin percentage to be approximately 60% and to incur a net operating loss on a GAAP and non-GAAP basis for the first quarter of 2015.

For the full year, the company is not revising its previously announced guidance.