Riverbed Technology Acquiring Opnet For $993 Million

Posted Oct 29, 2012

Riverbed Technology announced today that they are planning to acquire Opnet Technologies for $993.3 million in cash and stock.  The acquisition will help Riverbed optimize their software on corporate networks.  Riverbed will pay $36.55 in cash and 0.2774 of a share for each Opnet share.  This is a 34% premium to Opnet’s closing price on Friday.

Opnet is known for developing application performance management software, which optimizes the way that business software operates on networks.  ?The addition of Opnet establishes Riverbed as the clear leader in the high-growth and converging application and network performance management markets,? stated Riverbed chairman and CEO Jerry Kennelly. ?This acquisition also transforms Riverbed into a billion dollar revenue company.?

Riverbed will be integrating Opnet into their Cascade business unit.  The deal will be adding to its EPS on a pro forma basis starting next year.  Before the acquisition, Opnet has been struggling financially.  Their profit fell almost 19% in Q2 2013.

The cash portion of this transaction will be financed by Riverbed’s cash on hand and the financing will be provided by Goldman Sachs and Morgan Stanley.  The deal is likely to close by the end of the year.  Riverbed’s advisors was by law firms Weil, Gotshal & Manges and Wilson Sonsini Goodrich & Rosati.

Riverbed was advised by Goldman and the law firms Weil, Gotshal & Manges and Wilson Sonsini Goodrich & Rosati and Opnet was advised by Lazard and Cooley.