NEW YORK (TheStreet) -- Shares of Infoblox (BLOX) were jumping 15.03% to $26.26 on heavy trading volume mid-morning Monday as the Santa Clara, CA-based technology company agreed to be purchased by the privately-held San Francisco-based private equity firm Vista Equity Partners for $1.6 billion, or $26.50 per share.
The deal represents a 33% premium to Infoblox's average closing share price over the last 60 trading days, the company said in a statement.
The transaction is expected to close in Infoblox's 2016 second quarter. The company will maintain its current executive team and headquarters in Santa Clara.
Infoblox began pursuing a sale following pressure by New York City-based investment fund Starboard Value to do so, according to Reuters.
Infoblox provides enterprise and service provider-class solutions to automate management of network infrastructure technology.
About 19.4 million of the company's shares have changed hands so far today vs. its average volume of 848,026 shares per day.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
TheStreet Ratings team rates Infoblox as a Hold with a ratings score of C-. The primary factors that have impacted the rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its solid stock price performance, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. However, as a counter to these strengths, it finds that the growth in the company's net income has been quite unimpressive.
You can view the full analysis from the report here: