Web security firm Blue Coat acquired for $1.3 bn

Dec 09, 2011
Web security company Blue Coat Systems said Friday it is being acquired by a private investment group in a deal worth $1.3 billion.

Web security company Blue Coat Systems said Friday it is being acquired by a private investment group in a deal worth $1.3 billion.

The led by private equity investment firm Thoma Bravo will pay $25.81 per share in cash to Blue Coat shareholders for each share of they own, a 48 percent premium over Blue Coat's closing price Thursday.

The Sunnyvale, California-based Blue Coat said the transaction has been approved by the company's board of directors.

"As a private company, Blue Coat will be better positioned to innovate at an accelerated rate and achieve a higher level of growth," said Orlando Bravo, managing partner at San Francisco-based Thoma Bravo.

Seth Boro, a Thoma Bravo partner, said "Blue Coat marks the continuation of Thoma Bravo's investment efforts in the security technology industry, and is the firm's fifth platform investment."

Blue Coat said it expects the deal to close in the first quarter of next year.

US senators called last month for an investigation into whether US companies, including Blue Coat, have provided Internet monitoring and censorship technology to Syria, aiding its crackdown on dissent.

A Blue Coat official told AFP in October that Internet filtering equipment sold to Iraq's communications ministry has mysteriously been put to use in Syria and the company does not know how it ended up there.

A bill that would prohibit US exports of technology used for Internet surveillance or censorship was introduced in the US House of Representatives on Thursday.

"US companies should not, knowingly or unwittingly, be providing the technology used by repressive regimes to hunt down and punish ," said Representative Chris Smith, a Republican from New Jersey who is behind the Global Online Freedom Act.

The legislation would bar American companies from exporting hardware or software that could be used for online surveillance or censorship to nations that restrict the Internet.

Explore further: Strong iPhone 6 demand boosts Taiwan export orders

add to favorites email to friend print save as pdf

Related Stories

Blue Coat Brings WAN Optimization to Road Warriors

Apr 10, 2007

The new SG Client extends performance and security benefits to remote users, while improved traffic visibility and reporting ease management and help make a business case for application-acceleration technology, Blue Coat ...

US lawmakers seek action on Internet freedom

Mar 09, 2010

US lawmakers from the two major parties on Tuesday issued a joint call for government action to ensure Internet freedom overseas amid alarm at China's cyber-censorship.

Blackboard to be taken private in $1.64B deal

Jul 01, 2011

(AP) -- Educational software maker Blackboard is being taken private for $1.64 billion in cash by an investor group led by affiliates of Providence Equity Partners.

Recommended for you

Amazon, Simon & Schuster sign book retail deal

3 hours ago

Amazon has reached a deal with American book publisher Simon & Schuster, the companies said, though the e-commerce giant remains at loggerheads with France's Hachette over e-book pricing.

Facebook sues law firms, claims fraud

14 hours ago

Facebook is suing several law firms that represented a man who claimed he owned half of the social network and was entitled to billions of dollars from the company and its CEO Mark Zuckerberg.

IBM 3Q disappoints as it sheds 'empty calories'

14 hours ago

IBM disappointed investors Monday, reporting weak revenue growth again and a big charge to shed its costly chipmaking division as the tech giant tries to steer its business toward cloud computing and social-mobile ...

User comments : 0