Infoblox (BLOX) to Be Acquired by Vista Partners in $1.6B Deal

Shares of Infoblox Inc. (BLOX) were trading up +3.17 or +13.89 percent to $26.00 per share in Monday’s premarket after news broke early this morning that Vista Equity Partners would be taking the company over in a $1.6 billion transaction. Infoblox Inc. stock closed at $22.83, down -0.31 or -1.34 percent in Friday’s regular trading session.

Stock Analysis

Founded in 1999, Santa Clara, California based Infoblox was started in Chicago by Stuart Bailey, a tech lead from the Laboratory for the Advanced Computing National Center for Data Mining at the University of Illinois.
The company specializes in the development of hardware and software for the management of Internet addresses providing actionable network intelligence to corporations, government and Internet service providers all over the world. The company is the industry leader in IP address management, Domain Name System (DNS) and Dynamic Host Configuration Protocol (DHCP).

Founded by Robert F.
Infoblox (BLOX) to Be Acquired by Vista Partners in $1.6B Deal
Image by geralt / Pixabay
Smith in 2000, San Francisco, California based Vista Equity Partners is a privately held private equity firm specializing in the software and technology sectors. In addition to its San Francisco headquarters, the company has offices in Chicago, Illinois and Austin, Texas and has a total of $26 billion of capital under management.

The two companies announced early on Monday that they had entered into a definitive agreement for Infoblox to be acquired by Vista Equity Partners for $26.50 per share in cash. The deal, which represents a +33 percent premium to Infoblox’ stock closing price over the last 60 days, and a +75 percent premium to Infoblox’s closing price on May 11th of this year when reports of interest in the acquisition first surfaced in the media.

Jesper Andersen, President and CEO of Infoblox stated in this morning’s press release that, “This transaction will provide immediate and substantial value to Infoblox stockholders, while also giving Infoblox greater flexibility to execute on our long-term strategy to drive increased DDI automation and DNS security into the enterprise market. We are excited to begin our partnership with Vista and look forward to leveraging their operational insights as we continue to deliver the industry-leading products, solutions and customer service on which our customers rely.”

According to the press release, Infoblox’s Board of Directors conducted a thorough evaluation of a number of indications of interest before deciding to proceed with the current deal with Vista Partners. The board unanimously recommends shareholders tender their shares in the offer that will be followed by a merger. Infoblox will retain its senior management and corporate headquarters in Santa Clara, California.

The transaction is being handled by Morgan Stanley (MS) acting as exclusive financial advisor, as well as Fenwick &West LLP acting as legal advisor for Infoblox, and Kirkland & Ellis, legal advisor for Vista Partners. The deal is expected to close by the end of Infoblox’s fiscal second quarter and is subject to the customary closing conditions and regulatory approvals.

Other News About BLOX

Infoblox begins negotiations to sell itself – sources

The company actively began looking for a buyer at the end of August.

blox)-stock.html">Infoblox (BLOX) Stock Advancing After Q4 Earnings Beat

Company announced fiscal fourth quarter 2016 earnings on September 1st.

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Published on Sep 19, 2016
By Jay Hawk
Jay Hawk
Jay Hawk enjoyed a 12-year professional financial markets career incorporating extensive first hand futures and options experience obtained by trading in the stock, commodity and forex markets on U.S. exchanges. Since retiring as a full-time financial market professional, he has been actively trading stock, commodities, forex and options for his own account and managing funds for others, as well as writing financial market commentary and educational articles.

Copyrighted 2016. Content published with author's permission.

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