SAN FRANCISCO – May 30, 2023 – Vector Capital (“Vector”), a leading private equity firm specializing in transformational investments in established technology businesses, today announced it has agreed to acquire Riverbed Technology (“Riverbed” or the “Company”), a leading IT solutions provider that delivers secure, seamless digital experiences and accelerates enterprise performance to global corporations. Riverbed’s existing lenders will continue to support the Company by providing it with a new credit facility at closing. Terms of the transaction were not disclosed.
Since its inception in 2002, Riverbed has helped the world’s largest organizations—including 95% of the FORTUNE 100—empower the digital experience and drive enterprise performance. The Company’s two industry-leading solutions, Alluvio by Riverbed for Unified Observability and Riverbed Acceleration, help its customers transform data into actionable insights and deliver fast, agile and secure acceleration of any app over any network.
Andy Fishman, a Managing Director at Vector Capital, said: “Riverbed is a premier brand in the networking and IT observability sectors with a strong portfolio of market-leading products that we are proud to invest behind. We look forward to working with Riverbed’s management team to execute on the Company’s growth strategy.”
Stephen Goodman, a Principal at Vector Capital, added: “With a significantly enhanced balance sheet and greater financial flexibility, Riverbed will have the ability to accelerate innovative offerings like Aternity and Alluvio IQ, creating value for its blue-chip customer base.”
Dan Smoot, President and CEO of Riverbed Technology said: “This transaction is an exciting step forward for Riverbed that will enable us to build on the strong momentum underway. Vector Capital has an impressive track record of building and scaling global technology companies and driving value for all stakeholders, and we look forward to partnering with Vector to position Riverbed for the future. I would also like to thank our talented team for their continued focus and hard work, and our lenders for their ongoing support.”
The transaction is subject to standard and customary closing conditions including the receipt of regulatory approvals and is expected to close in the coming months.
Lazard served as lead investment banker and Stifel and TD Cowen also served as financial advisors to Vector Capital. Paul Hastings LLP served as legal counsel to Vector Capital and Ernst & Young LLP provided accounting advice. Centerview Partners and FTI Consulting served as financial advisors and White & Case LLP served as legal counsel to Riverbed. Houlihan Lokey served as financial advisor and Davis Polk & Wardwell LLP served as legal counsel to a Steering Committee of Riverbed’s Lenders.
About Vector Capital
Vector Capital is a leading, San Francisco-based private equity investment firm focused on transformational investments in middle market technology and technology-enabled businesses. Founded in 1997, Vector manages over $4 billion of capital across its private equity and credit strategies on behalf of a high-quality group of global limited partners. For over 25 years, we have invested in technology businesses concurrent with implementing an operational transformation to deliver breakthrough operational and financial results. For more information, please visit www.vectorcapital.com.
Riverbed is the only company with the collective richness of telemetry from network to app to end user, that illuminates and then accelerates every interaction, so organizations can deliver a seamless digital experience and drive enterprise performance. Riverbed offers two industry-leading portfolios: Alluvio by Riverbed, a differentiated Unified Observability portfolio that unifies data, insights, and actions across IT, so customers can deliver seamless, secure digital experiences; and Riverbed Acceleration, providing fast, agile, secure acceleration of any app, over any network, to users anywhere. Together with our thousands of partners, and market-leading customers globally – including 95% of the FORTUNE 100 – we empower every click, every digital experience. Riverbed. Empower the Experience. Learn more at riverbed.com
Riverbed, Alluvio and certain other terms used herein are trademarks of Riverbed Technology LLC. All other trademarks used herein belong to their respective owners.
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