Infoblox Inc (NYSE:BLOX) stock is soaring 15% this morning after it announced that Vista Equity Partners would buy the company for approximately $1.6 billion.
The deal, which was unanimously approved by Infoblox’s board, breaks down to some $26.50 per share. That’s a premium of 33% to the 60-day average of BLOX stock.
Bloomberg reported earlier this year that Vista Equity rival Thoma Bravo was in talks to buy Infoblox. BLOX faced pressure from activist investor Starboard Value LP to sell.
After today’s 15% gain, BLOX shares are trading 70% higher from May 11 — the day Bloomberg reported Infoblox was looking for a buyer to take the company private.
Infoblox president and CEO Jesper Andersen had this to say about the deal:
“We are excited to begin our partnership with Vista and look forward to leveraging their operational insights as we continue to deliver the industry-leading products, solutions and customer service on which our customers rely.”
Infoblox brought in $306.12 million during its fiscal 2015, representing year-over-year growth of 22%. However, analysts expected BLOX earnings to decelerate this quarter.
Vista Equity Partners co-founder Brian Sheth said:
“As all industries are moving to the cloud in record speed, and as connected devices proliferate, companies depend more than ever on network automation 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.”
The transaction should close during Infoblox’s second quarter ending in January.
As of this writing, John Kilhefner did not hold a position in any of the aforementioned securities.
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