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: Out-of-patience investors sell off Amazon

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

Out-of-patience investors sell off Amazon

Oct 24, 2014

Amazon has long acted like an ideal customer on its own website: a freewheeling big spender with no worries about balancing a checkbook. Investors confident in founder and CEO Jeff Bezos' invest-and-expand ...

States ascend into the cloud

Oct 24, 2014

Seven years ago, the state of Delaware started moving computer servers out of closets and from under workers' desks to create a consolidated data center and a virtual computing climate.

Microsoft drops Nokia name from smartphones

Oct 24, 2014

Microsoft said Friday it was dropping the Nokia name from its Lumia smartphones, rebranding following the acquisition earlier this year of the Finnish group's handset division.

Amazon's loss makes holidays a question mark

Oct 24, 2014

Amazon's trademark smile icon is becoming more of a grimace. The world's largest online retailer reported a wider third-quarter loss than analysts expected and gave a disappointing holiday forecast.

User comments : 0