Blue Coat Sees Green After Reaching $1.3B Buyout
Blue Coat Systems (NASDAQ:BCSI) inked a $1.3 billion on Friday to be taken private by a group led by private-equity firm Thoma Bravo in a deal that values the Internet networking and security company at a 48% premium.
The transaction, which is expected to close in the first quarter, is worth $25.81 a share, compared with Blue Coat’s $17.48 closing price on Thursday.
Sunnyvale, Calif.-based Blue Coat said it will continue to operate with a focus on Web security and wide area network, or WAN, optimization.
“Our partnership with Thoma Bravo will assist Blue Coat in more aggressively realizing the opportunities in its two markets, by providing a platform that enables greater focus on the business that supports the future growth of the company,” Blue Coat CEO Gregory Clark said in a statement.
In addition to Thoma Bravo, the buying group includes the Ontario Teachers’ Pension Plan.
“As a private company, Blue Coat will be better positioned to innovate at an accelerated rate and achieve a higher level of growth,” said Orlando Bravo, managing partner at Thoma Bravo.
Shares of Blue Coat soared 44.62% to $25.28 Friday.
Goldman Sachs (NYSE:GS) advised Blue Coat on the transaction, while Jefferies (NYSE:JEF) provided financial commitments to Thoma Bravo, which is based in San Francisco.