Thoma Bravo buys Riverbed in take private deal

Teachers’ Private Capital will invest alongside Thoma Bravo in the acquisition

Chicago-based Thoma Bravo and Teachers’ Private Capital, the private investment arm of the Ontario Teachers’ Pension Plan, have acquired Riverbed Technology for $3.6 billion, in a take private deal. The transaction amounts to a $21.00 per share price in cash.

The share price amounts to a 12 percent premium over what Riverbed’s stock closed at on Friday.

San Francisco-based Riverbed Technology is a provider of application performance infrastructure, and has recently been under pressure from activist investors to create more value for shareholders. Earlier this year, Paul Singer’s Elliot Management made an offer to buy the company for $19 per share.

Riverbed has more than $1 billion in annual revenues, and a customer base of over 25,000. Customers include nearly all of the Fortune 100 and Forbes Global 100.

“This investment is the largest in Thoma Bravo’s history,” noted Seth Boro, managing partner at Thoma Bravo. Riverbed said it plans to use the investment to expand the company’s client base and service offering.

Riverbed CEO and founder Jerry Kennelly will remain with the Company in the same capacity. The transaction is expected to close in the first half of 2015.

Qatalyst Partners and Goldman, Sachs & Co. served as financial advisors to Riverbed, in the transaction.

Thoma Bravo is currently investing out of its Thoma Bravo Fund XI, which closed in May on $3.65 billion, according to Private Equity International’s research and analytics division.