Leading private equity firm Vector Capital has announced it has agreed to acquire IT solutions provider Riverbed Technology. 
Riverbed’s existing lenders will continue to support the company by providing it with a new credit facility at closing. However, terms of the transaction were not disclosed.
Since its inception in 2002, Riverbed has helped the world’s largest organizations—including 95% of the FORTUNE 100—empower the digital experience and drive enterprise performance.
The company’s two industry-leading solutions, Alluvio by Riverbed for Unified Observability and Riverbed Acceleration, help its customers transform data into actionable insights and deliver fast, agile and secure acceleration of any app over any network.
Andy Fishman, a Managing Director at Vector Capital, said: “Riverbed is a premier brand in the networking and IT observability sectors with a strong portfolio of market-leading products that we are proud to invest behind. We look forward to working with Riverbed’s management team to execute on the Company’s growth strategy.”
Stephen Goodman, a Principal at Vector Capital, added: “With a significantly enhanced balance sheet and greater financial flexibility, Riverbed will have the ability to accelerate innovative offerings like Aternity and Alluvio IQ, creating value for its blue-chip customer base.”
Dan Smoot, President and CEO of Riverbed Technology said: “This transaction is an exciting step forward for Riverbed that will enable us to build on the strong momentum underway. Vector Capital has an impressive track record of building and scaling global technology companies and driving value for all stakeholders, and we look forward to partnering with Vector to position Riverbed for the future. I would also like to thank our talented team for their continued focus and hard work, and our lenders for their ongoing support.”
The transaction is subject to standard and customary closing conditions including the receipt of regulatory approvals and is expected to close in the coming months.
Lazard served as lead investment banker and Stifel and TD Cowen also served as financial advisors to Vector Capital. Paul Hastings LLP served as legal counsel to Vector Capital and Ernst & Young LLP provided accounting advice.
Centerview Partners and FTI Consulting served as financial advisors and White & Case LLP served as legal counsel to Riverbed. Houlihan Lokey served as financial advisor and Davis Polk & Wardwell LLP served as legal counsel to a Steering Committee of Riverbed’s Lenders.
