NEW YORK (TheStreet) -- Infoblox (BLOX) shares are soaring 18.81% to $18.19 on Thursday morning after the company received a buyout approach from technology-focused private equity firm Thoma Bravo, valuing the deal at around $886 million, Bloomberg reports.
It was last week when the network software and cyber-security company first received the proposal from Thoma Bravo.
Infoblox is looking to hire advisers to study a strategic option, including an auction process, according to Bloomberg, which published the article last night citing sources who did not wish to be identified.
This comes a month after activist investor Starboard Value took about a 7% stake in the company.
Earlier this week, Infoblox cautioned that 2016 third quarter sales will most likely fall below analysts' expectations. It expects revenue to be between the range of $81 million to $82 million, under its previous projections of between $91 million and $93 million. Wall Street is looking for sales of $92 million.
Separately, TheStreet Ratings currently has a "Hold" rating on the stock with a letter grade of C-.
The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and compelling growth in net income. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.
Recently, 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.
You can view the full analysis from the report here: BLOX