Infoblox to Be Acquired by Vista Equity for $1.6 Billion
Network company was working with Morgan Stanley on defense
Activist Starboard revealed 7% stake in Infoblox in April
Infoblox Inc., the network-security company that fielded both unsolicited takeover interest and an activist shareholder this year, agreed to be bought by private equity firm Vista Equity Partners in a deal valued at $1.6 billion.
Shareholders will receive $26.50 a share of common stock in cash, a 33 percent premium to the average closing share price over the last 60 trading days, the company said in a statement Monday. The deal is expected to close during Infoblox’s fiscal second quarter, or some time during the three months ending Jan. 31.
The accord caps several tumultuous months for the company, which was targeted in April by activist investor Starboard Value and in May received a takeover offer from private equity firm Thoma Bravo. Infoblox, whose software is used for applications including automation of businesses’ computer-network functions, hired Morgan Stanley for activist defense shortly after receiving the Thoma Bravo offer, people familiar with the matter said in June.
Infoblox, based in Santa Clara, California, climbed 15 percent to $26.27 as of 12:45 p.m. in New York Monday, giving the company a market value of about $1.5 billion.
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Starboard Value, one of the most prolific U.S. activists, disclosed a stake of about 7 percent in Infoblox in April. The New York-based firm, which was instrumental in pushing Yahoo! Inc. toward its own sales process, said at the time it might seek talks with the company regarding ownership structure, board structure and possible business combinations, among other things.
Starboard said the shares were undervalued and represented an attractive investment opportunity. Infoblox’s shares dropped 28 percent in the 12 months through April 1, according to data compiled by Bloomberg. The activist shareholder may have been drawn to Infoblox’s cost structure and cash balance profile, Bloomberg Intelligence analyst Woo Jin Ho said of the position.
Morgan Stanley is acting as exclusive financial adviser and Fenwick & West LLP is acting as legal adviser to Infoblox. Vista’s legal adviser is Kirkland & Ellis LLP.
The company will remain based in Santa Clara and keep its current executive team, according to the statement.