Riverbed Technology Inc. (RVBD) has agreed to buy Opnet
Technologies Inc. (OPNT) for about $1 billion in cash and stock as
the network-appliance maker looks to extend its network performance
management business into the multibillion-dollar application
performance management market.
Riverbed will pay Opnet's shareholders a per-share price of $43,
a 34% premium over the company's Friday closing price.
"The addition of Opnet establishes Riverbed as the clear leader
in the high-growth and converging application and network
performance management markets," Riverbed Chief Executive Jerry
Kennelly said. "This acquisition also transforms Riverbed into a
billion dollar revenue company."
Riverbed noted that the combination of its Cascade business unit
and Opnet will create a new force in the converged market for
network and application performance management, with over $250
million in annualized revenue.
The deal, which is expected to close Dec. 31, is expected to add
to adjusted earnings in 2013. The company said it expects
meaningful revenue and operating synergies in 2014.
Opnet stockholders will receive $36.55 in cash and about 0.28 of
a share of Riverbed common stock for every Opnet share they own.
The cash portion of the offer consideration will be financed
through Riverbed's existing cash on hand and new debt.
Separately Monday, Opnet reported fiscal second-quarter results
that missed expectations. Earnings fell 19% as revenue costs and
operating expenses climbed. And earlier this month, Riverbed
reported double-digit profit growth with strong sales in Europe and
the Americas, moving past missteps that hit the bottom line at the
beginning of the year.
Write to Saabira Chaudhuri at saabira.chaudhuri@dowjones.com
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