Sandvine Corp said on Monday it had terminated a deal with U.S. private equity firm Vector Capital and accepted a higher offer from a unit of Francisco Partners and Procera Networks Inc, valuing the Canadian network equipment maker at about $562 million (US$444 million).
U.S. private equity firm Francisco and Procera, a Fremont, California-based networking equipment maker, will pay $4.40 per Sandvine share. Sandvine will be merged with Procera, whose Chief Executive Lyndon Cantor will lead the combined entity.
Earlier this month, Sandvine had accepted an amended offer from Vector Capital’s unit, Scalar Acquireco Corp, for $4.15 per share, valuing Sandvine at about $529 million.
Shares of Sandvine were down 2 percent at $4.35. Up to Friday’s close, the company’s stock had risen nearly 40 percent since Vector Capital’s initial offer in May.
Procera provides network visibility and control across mobile and fixed broadband networks.
The combined company will serve over 400 communications service providers, with over 1 billion subscribers in more than 100 countries, Andrew Kowal, a partner at Francisco Partners, said in a statement.
Sandvine retained Canaccord Genuity as its exclusive financial adviser, while Procera was advised on the transaction by J.P. Morgan Securities.
Update: Founded in 2001 and based in Waterloo, Sandvine is a provider of network policy control solutions to more than 300 networks around the world. It will retain its name with the acquisition.
Sandvine has been led since 2001 by President and CEO Dave Caputo, who is one of the company’s co-founders. Caputo will join the board of directors of the combined company as non-executive chairman.
(Reporting by Anirban Paul and John Benny in Bengaluru; Editing by Anil D’Silva and Maju Samuel)
(This story has been edited by Kirk Falconer, editor of PE Hub Canada)
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