It was announced on Monday that the private equity firm Vista Equity Partners, LLC has entered into an agreement with Infoblox Inc (NYSE:BLOX) to acquire the enterprise for $1.6 billion. It was reported by Reuters last month that Infoblox launched an auction to sell itself after pressure was exerted from Starboard Value LP, who acquired 7.1% stake in the company.
Prior to this Infoblox reported a $14 million net loss on the $358 million in revenue for the financial year ending in July. In addition to this, in 2015 there was a net loss of $27 million from $306 million in revenue.
The Final Profit Through This Sale ForInfoBlox
The terms of the agreement of the sale of Infoblox extends to Vista Equity being liable for $26.50 per share of common stock, in cash. This amount is higher than that of the total stock price before shares closed on Friday.
This price is additionally 73% higher than that of which InfoBlox stocks were trading at around the middle of May, this period of time is in relevance to when Thoma Bravo; proclaimed a takeover offer for InfoBlox, from a company in direct competition with Vista Equity.
It has been reported that the headquarters of InfoBlox, located in Santa Clara, California, will continue to be run by the current executive team. The transaction itself is expected to be fulfilled upon the closing of the second financial quarter.
The Financial advisor for this deal is Morgan Stanley; it is expected that the finalization of this transaction will be strictly monitored by regulatory approvals, as well as customary closing conditions.
The Acquisitions Of Vista Equity Over The Last Year
The acquisition of InfoBlox, is not, however, the first successful deal that Vista Equity has implemented throughout the course of this year. Further additions to the development of the company include the acquisition of Cvent Inc (NYSE:CVT), which took place in April.
Another company that Vista Equity successfully acquired in 2016 includes Marketo Inc (NASDAQ:MKTO), this merger took place in May.