Feeds

Blue Coat pockets Packeteer for $268m

I'll get my...

Remote control for virtualized desktops

WAN optimization specialist Blue Coat is to lay down a hefty $268m to purchase its rival, Packeteer.

The proposed deal comes after Packeteer rejected an unsolicited bid from hedge fund firm Elliott Associates LP in early March to purchase the company for $200.6m. Elliott owns about 9.8 per cent of Packeteer, and said it made the offer because it was unhappy with the management team's failure to generate a profit.

Blue Coat said the acquisition, which scored a definitive agreement with Packeteer's board, will add about 1,400 new channel partners, 50 sales teams, and 10,000 new customers. The company also intends to integrate Packeteer's PacketShaper traffic management and application visibility features into their own appliances, according Blue Coat CEO Brian NeSmith in a conference call today. The fate of Packeteer's current product line remains unclear at this point.

Blue Coat is eager for both the additional technology gains and market penetration Packeteer may provide. The company currently ranks number three behind Cisco and Riverbed in the WAN optimization game.

"Given the size of our respective global organizations and the complementary nature of our businesses, we will achieve substantial cost reductions and significant economies of scale almost immediately," said NeSmith in a statement.

The $268m purchase will be funded through Blue Coat's available cash and an $80m convertible notes financing. The deal is expected to close in the second quarter of 2008. ®

Beginner's guide to SSL certificates

More from The Register

next story
NSA SOURCE CODE LEAK: Information slurp tools to appear online
Now you can run your own intelligence agency
Azure TITSUP caused by INFINITE LOOP
Fat fingered geo-block kept Aussies in the dark
NASA launches new climate model at SC14
75 days of supercomputing later ...
Yahoo! blames! MONSTER! email! OUTAGE! on! CUT! CABLE! bungle!
Weekend woe for BT as telco struggles to restore service
Cloud unicorns are extinct so DiData cloud mess was YOUR fault
Applications need to be built to handle TITSUP incidents
BOFH: WHERE did this 'fax-enabled' printer UPGRADE come from?
Don't worry about that cable, it's part of the config
Stop the IoT revolution! We need to figure out packet sizes first
Researchers test 802.15.4 and find we know nuh-think! about large scale sensor network ops
SanDisk vows: We'll have a 16TB SSD WHOPPER by 2016
Flash WORM has a serious use for archived photos and videos
Astro-boffins start opening universe simulation data
Got a supercomputer? Want to simulate a universe? Here you go
prev story

Whitepapers

Go beyond APM with real-time IT operations analytics
How IT operations teams can harness the wealth of wire data already flowing through their environment for real-time operational intelligence.
10 threats to successful enterprise endpoint backup
10 threats to a successful backup including issues with BYOD, slow backups and ineffective security.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security and trust: The backbone of doing business over the internet
Explores the current state of website security and the contributions Symantec is making to help organizations protect critical data and build trust with customers.