Riverbed joins chase for Radware

Riverbed Technology Inc. has entered the race against Hewlett Packard Co., which is still in talks to acquire Radware.

By SHIRI HABIB-VALDHORN / GLOBES
December 6, 2010 23:24
1 minute read.
The Jerusalem Post

Money 311. (photo credit: Bloomberg)

 
X

Dear Reader,
As you can imagine, more people are reading The Jerusalem Post than ever before. Nevertheless, traditional business models are no longer sustainable and high-quality publications, like ours, are being forced to look for new ways to keep going. Unlike many other news organizations, we have not put up a paywall. We want to keep our journalism open and accessible and be able to keep providing you with news and analyses from the frontlines of Israel, the Middle East and the Jewish World.

As one of our loyal readers, we ask you to be our partner.

For $5 a month you will receive access to the following:

  • A user experience almost completely free of ads
  • Access to our Premium Section
  • Content from the award-winning Jerusalem Report and our monthly magazine to learn Hebrew - Ivrit
  • A brand new ePaper featuring the daily newspaper as it appears in print in Israel

Help us grow and continue telling Israel’s story to the world.

Thank you,

Ronit Hasin-Hochman, CEO, Jerusalem Post Group
Yaakov Katz, Editor-in-Chief

UPGRADE YOUR JPOST EXPERIENCE FOR 5$ PER MONTH Show me later Don't show it again

Radware Ltd. has made no comment about being on the shelf for months, but it clearly is attracting interest among other communications equipment makers.

Riverbed Technology Inc. has entered the race against Hewlett Packard Co., which is still in talks to acquire Radware. The bidding by the two companies is about $47 per share, reflecting a company value for Radware of $900 million to $1 billion, a 45 percent premium on its current market cap.

Be the first to know - Join our Facebook page.


Radware’s share rose 19.1% at the opening on Nasdaq to $39.03, giving a market cap of $745m.

Radware is sticking with its “no comment” policy of recent months with regard to Riverbed’s entry into the picture. At the conference call following the publication of Radware’s third-quarter financial report, executives declined to comment on the negotiations for the acquisition of the company, merely saying, “The company is keeping its eyes and ears open for opportunities to increase value for shareholders.”

Radware knows Riverbed well. The two companies complement each other in terms of technological capabilities, they collaborate in the distribution of products, and sometimes they submit joint bids in tenders for communications infrastructures.

Riverbed, founded in 2003, is considered an industry star. It has a market cap of $5.1b. and posted a net profit of $13m. on $147m. revenue for the third quarter.

The proposed merger is not just between two companies but also between two fields of business. Radware makes products to improve the performance of applications by routing Internet traffic load (application delivery controller, or ADC), and Riverbed offers enterprise network optimization solutions between remote branches (WAN optimization controller, or WOC).

Related Content

The Teva Pharmaceutical Industries
April 30, 2015
Teva doubles down on Mylan, despite rejection

By GLOBES, NIV ELIS