Riverbed Technology To Be Acquired By Thoma Bravo, Teachers For $3.6 Bln.

(RTTNews) - Riverbed Technology Inc. (RVBD) Monday said it has agreed to be acquired by private-equity firm Thoma Bravo LLC and Teachers' Private Capital for $3.6 billion. Shares of Riverbed jumped about nine percent following the news.

Shareholders of Riverbed will get $21 per share in cash, the San Francisco, California-based company said. The company said the deal has been approved by its board after a review of strategic and financial alternatives announced in October.

For the past one year, Elliott Management Corp., which has a 10.5 percent stake in Riverbed Technology, has been putting pressure on Riverbed to review its alternatives, stating that its shares were "significantly undervalued." Elliott even made an unsolicited bid in January and sweetened its offer to $21 a share in February.

Riverbed CEO Jerry Kennelly said, "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."

Jerry Kennelly will remain with the company in the same capacity.

The transaction, which is expected to close in the first half of 2015, is subject to approval by Riverbed Technology stockholders and regulatory authorities.

RVBD is currently trading at $20.45, up $1.71 or 9.12%, on the Nasdaq.