Blue Coat Systems, a wide area networking optimization and security company, said it will go private in a deal valued at $1.3 billion. Private equity firm Thoma Bravo will buy the company.
Shareholders of the company, which competes with Riverbed, will get $25.81 a share in cash. Blue Coat closed at $17.48 on Thursday.
Blue Coat said it will continue to focus on Web security and WAN optimization, a hot category for enterprises.
David Hanna, chairman of Blue Coat, said the company spent six months looking at its strategic options. Greg Clark, CEO of Blue Coat, said the Thoma Bravo buyout will allow it to expand in two markets.
Blue Coat's last two quarters of earnings have been mixed. The company missed estimates in the first quarter, but handily beat them in the second quarter. For the fiscal year ending April 30, 2012, Blue Coat is expected to report net income of $40.06 million on revenue of $459.16 million. For 2011, rival Riverbed is expected to report net income of $147.2 million on revenue of $724.69 million.