M&A News: Barracuda Networks Inc Stock Skyrockets on Buyout

Barracuda Networks Inc (NYSE:CUDA) stock was flying high today on news of a buyout.

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Barracuda Networks Inc has agreed to a deal that will have it being acquired by Thoma Bravo for $1.6 billion. This means that holders of CUDA stock will receive $27.55 per share, which is roughly  23% premium over the stock’s 10-day average prior to Nov. 27, 2017.

Once the deal is complete, Barracuda Networks Inc will act as a private company. It will still continue to focus on “email security and management, network and application security, and data protection solutions” once the deal is complete.

“Thoma Bravo has an excellent history of investing in growing security businesses, and this transaction speaks to the value and strength of Barracuda’s security platform, which helps customers protect and manage their networks, applications, and data,”  BJ Jenkins, CEO of Barracuda Networks Inc, said in a statement. “I expect that our employees, customers, and partners will benefit from this partnership.”

Barracuda Networks Inc’s Board of Directors have already given their unanimous approval to the deal. However, it still needs approval from regulators and shareholders before it is complete. The company is expecting the deal to close before the end on its fiscal year on Feb. 2018, 2018.

Barracuda Networks Inc is getting financial advice for the deal from Morgan Stanley & Co. LLC and its legal advice is coming from Wilson Sonsini Goodrich & Rosati, Professional Corporation.

CUDA stock was up 16% as of Monday afternoon and is up 28% year-to-date.

As of this writing, William White did not hold a position in any of the aforementioned securities.

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