WATERLOO, ON – Sandvine Corporation is being acquired by San Francisco-based global private equity firm Vector Capital in a deal valued at approximately CAD $483 million.
The company said that Vector Capital affiliate Scalar AcquireCo Corp. will acquire all of the issued and outstanding shares of Sandvine, other than certain shares held by members of management.
“The Sandvine Team has built the clear leader in network policy control and I am extremely proud of what we have accomplished to date,” said Sandvine president and CEO Dave Caputo, in the announcement. “There are a number of long-term growth opportunities that Vector, as a specialist technology investor, is enthusiastic about and can help us pursue more aggressively. We see this as an excellent opportunity to better serve our 300-plus customers, to enhance our strategic position over the longer term, and to do it The Sandvine Way.”
Caputo and members of Sandvine’s senior management team (Don Bowman, Tom Donnelly, Brad Siim and Scott Hamilton), have agreed to exchange an aggregate of 5.1 million shares, representing the majority of their common share holdings, for shares of an affiliate of Scalar Acquireco.
“Vector was specifically formed to collaborate with market leading technology companies to accelerate their growth and redefine their markets in new and disruptive ways”, added Rob Amen, a managing director at Vector Capital. “We believe that Sandvine’s emerging product opportunities and transition to fully virtualized solutions represent an opportunity for such a disruption. Our partnership with this deeply talented Team couldn’t be stronger.”
Following closing of the deal, Sandvine common shares will be de-listed from the TSX and no longer traded publicly.
