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Monday, December 15, 2014

Riverbed to be bought by Thoma Bravo, Ontario Teachers, (NASDAQ: RVBD)

Thoma Bravo LLC and the Ontario Teachers' Pension Plan said they would purchase network equipment maker Riverbed Technology Inc for $3.6 billion, just over a year after the company's biggest shareholder started agitating for a sale.Paul Singer's Elliott Management Corp had been pressing Riverbed to sell itself due to a slowdown in its main wide-area network (WAN) optimization business and its struggle to integrate Opnet, a maker of software to manage traffic on networks that it bought in 2012 for about $1 billion.The offer of $21 per share in cash is a premium of 12 percent to Riverbed's closing price on Friday. Riverbed's stock was trading at $20.44 on Monday morning.Analysts said it was unlikely the offer, which matches an existing bid from Elliott, would be topped.

Riverbed Technology, Inc. (Riverbed) has developed solutions to the fundamental problems associated with information technology (IT) performance across wide area networks (WANs). Shares of RVBD traded higher by 8.7% or $1.63/share to $20.37. In the past year, the shares have traded as low as $16.70 and as high as $22.76. On average, 1389950 shares of RVBD exchange hands on a given day and today's volume is recorded at 9952642.