Barracuda Networks (CUDA 27.49, +3.80, +16.0%) is a provider of cloud-enabled security and data protection solutions, which went public roughly four years ago at a price of $18.00 per share. Today, the company announced it is going back to the world of being a private company, having agreed to be acquired by private equity firm Thoma Bravo, LLC, for $1.6 billion, or $27.55 per share, in cash.
The offer price is a 22.5% premium over CUDA's 10-day average stock price prior to November 27, 2017.
Shares of CUDA traded just shy of $50.00 per share a little over two years ago, yet some disappointing earnings results in the interim took the stock briefly below $10.00 per share in early 2016.
Today's deal, then, sounds like a pretty sweet deal for shareholders -- and it is for many of them -- but it won't leave everyone feeling whole. Nevertheless, it is a transaction that Barracuda's Board of Directors believes "maximizes shareholder value;" hence, it was unanimously approved.
The transaction is expected to close before Barracuda's fiscal year end of February 28, 2018, pending shareholder and regulatory approval. The press release notes Barracuda, after closing, will continue to operate with a focus on email security and management, network and application security, and data protection solutions that can be deployed in cloud and hybrid environments.
Some of the companies Barracuda competes with in those industry niches are Check Point Software (CHKP 104.61, +0.59, +0.6%), CommVault Systems (CVLT 55.20, +0.30, +0.6%), F5 Networks (FFIV 123.87, +0.68, +0.6%), Juniper Networks (JNPR 27.48, +0.14, +0.5%), Palo Alto Networks (PANW 151.78, +1.14, +0.8%), and Proofpoint (PFPT 94.60, +2.00, +2.2%).