Riverbed® – RVBD – To acquire OPNET (OPNT)
NASDAQ: RVBD), the performance company, and OPNET Technologies, Inc. (NASDAQ: OPNT), the leading provider of solutions for application and network performance management, announced that Riverbed® has entered into a definitive agreement to acquire OPNET for $43 per share in cash and stock, representing an equity value of $1 billion and an enterprise value of $921 million. The acquisition will enable Riverbed to extend its network performance management (NPM) business into the multi-billion dollar application performance management (APM) market. The combination of Cascade® and OPNET will create a new force in the converged market for NPM and APM, with over $250 million in annualized revenue.
Networks and applications are required to work together to deliver the performance business users demand. The addition of OPNET’s broad-based family of APM products enhances Riverbed’s already strong position in the NPM market. The resulting combination is a product line with unparalleled visibility and insight into application and network performance. This acquisition enables Riverbed to provide customers with a unique integrated solution that not only monitors network and application performance, but also accelerates it.
“The addition of OPNET establishes Riverbed as the clear leader in the high-growth and converging application and network performance management markets,” said Jerry Kennelly, Chairman and CEO at Riverbed. “This acquisition also transforms Riverbed into a billion dollar revenue company.”
“Riverbed and OPNET have natural synergies,” said Marc Cohen, OPNET’s Chairman and CEO. “Riverbed’s leadership in accelerating business technology combined with OPNET’s industry-leading suite of APM products provides customers with a single solution for monitoring, troubleshooting and actually fixing the application and network performance problems challenging them today.”
OPNET will be combined with Riverbed’s Cascade business unit. The transaction is expected to be accretive to Riverbed’s 2013 earnings per share on a non-GAAP basis. Leveraging the Riverbed brand, channels and infrastructure, Riverbed expects meaningful revenue and operating synergies in 2014.
About OPNET Technologies, Inc. – OPNT
Founded in 1986, OPNET Technologies, Inc. (OPNT) is the leading provider of solutions for application and network performance management.
About Riverbed – RVBD
Riverbed (RVBD) delivers performance for the globally connected enterprise. With RVBD, enterprises can successfully and intelligently implement strategic initiatives such as virtualization, consolidation, cloud computing, and disaster recovery without fear of compromising performance. By giving enterprises the platform they need to understand, optimize and consolidate their IT, Riverbed helps enterprises to build a fast, fluid and dynamic IT architecture that aligns with the business needs of the organization.
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Post Written By: Ed Liston
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.
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