San Jose, CA based SonicWALL, Inc. (NASDAQ:SNWL), a provider of IT security and data solutions, today announced it has entered into a definitive agreement to be acquired by an investor group led by Thoma Bravo, LLC and the Ontario Teachers’ Pension Plan (Teachers’ Private Capital) in a transaction valued at approximately $717 million.
Under the terms of the agreement, SonicWALL shareholders will receive $11.50 in cash for each share of SonicWALL common stock they hold, a premium of approximately 28% over the most recent closing price, and approximately a 63% premium over the Company’s enterprise value.
“Our agreement with Thoma Bravo represents an attractive valuation for our shareholders, and we look forward to closing the transaction as quickly as possible,” said Matthew Medeiros, SonicWALL’s President and Chief Executive Officer. “A partnership with Thoma Bravo will strengthen our focus on delivering the most advanced and highest quality solutions to our customers.”
“Thoma Bravo and Teachers’ Private Capital are excited to partner with SonicWALL to continue building the company into a leader in the IT security market,” said Seth Boro, a Principal at Thoma Bravo.
“We look forward to working with SonicWALL to accelerate the company’s organic growth strategy and to pursue a consolidation strategy in the network security market as well as adjacent markets,” added Robert Sayle, a Vice President at Thoma Bravo.
“Thoma Bravo and Teachers’ Private Capital will continue to support SonicWALL’s efforts to increase its customer value through product innovation and world-class customer support,” said Neil Petroff, Teachers’ Executive Vice-President and Chief Investment Officer.
The transaction is subject to customary closing conditions, including requisite regulatory approvals and approval of SonicWALL shareholders. The transaction is not subject to a financing condition. SonicWALL expects the transaction to close in the Company’s fiscal quarter ending September 30, 2010, or early in the fiscal quarter ending December 31, 2010. The SonicWALL Board of Directors unanimously approved the agreement.
