USA private equity firm Vista Equity Partners, today struck a deal to buy Infoblox Inc.in a deal that values the network software and security company at $1.6 billion.
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The $1.6 billion offer from Vista Equality Partners represents a massive 73 percent premium over Infoblox’s stock price on May 11, when Bloomberg first reported Thoma Bravo’s bid, and 16 percent more than its Friday closing price.
The company’s stock has been on a roller-coaster ride since rumors surfaced that it was courting private equity firms.
Infoblox joins a long list of IT management companies that have come faced pressure from disgruntled investors that are fearing the impact of the shift from private cloud to public cloud, said Henderson via phone.
On the broad scope, the transaction values Infoblox at roughly $1.6 billion.
The $26.50 share price looks good in comparison to earlier this year. The transaction will be effected by means of a tender offer followed by a merger, and the Infoblox Board of Directors unanimously recommends Infoblox stockholders tender their shares in the offer. Infoblox develops software used for managing DNS, DHCP, and IP addresses and security.
“Infoblox is the trusted market leader in DDI solutions, and their strategy and portfolio of secure automated networking solutions make the company uniquely positioned to deliver for its customers”, said Brian Sheth, the co-founder and president of Vista Equity Partners, in a statement.
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The transaction with Vista Equity Partners is expected to close in Infoblox’s fiscal second quarter. The company will keep its headquarters in Santa Clara, California, and maintain its current executive team.
