Infoblox surges on Vista Equity Partners deal

Infoblox shares surged on Monday after the US network control company agreed to be acquired by Vista Equity Partners for around $1.6bn.

Under the terms of the deal, Infoblox shareholders will receive $26.50 per share of common stock cash. This is a 33% premium to the average closing price over the last 60 trading days and a 73% premium to its closing price on 11 May, which was the last trading day before media reports began surfacing.

Infoblox chief executive Jesper Andersen said: “Vista has an excellent track record of supporting and adding value to technology companies, and we are thrilled to bring on a partner of their calibre and strategic expertise.

“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.”

The deal is expected to close in Infoblox’s second quarter and the company said it will keep its corporate headquarters in Santa Clara, California and continue to be led by its current executive team.

Brian Sheth, co-founder of private equity firm Vista, which specialises in software, data and technology-enabled businesses, said: “Infoblox is the trusted market leader in DDI solutions, and their strategy and portfolio of secure automated networking solutions make the company uniquely positioned to deliver for its customers.”

Infoblox shares were up 15% in to $26.32 in pre-market trade.