NEW YORK (TheStreet) -- Shares of Riverbed Technology (RVBD) are up 9.07% to $20.44 on heavy trading volume after the San Francisco, CA-based telecommunications equipment company agreed to be acquired by private equity firm Thoma Bravo LLC for about $3.6 billion, the Wall Street Journal reports.
Riverbed shareholders will receive $21 a share under the deal, matching a previous offer from activist shareholder Elliott Management Corp., which said it supports the transaction, according to the Journal.
Riverbed Chief Executive Jerry Kennelly said in a statement Monday that the deal follows a "thorough strategic review, during which we assessed a wide variety of options to maximize value, the board unanimously concluded that partnering with Thoma Bravo was the best choice for Riverbed," the Journal added.
About 6.17 million shares changed hands by 10:23 a.m. in New York, compared to the average of 1.27 million shares.
Separately, TheStreet Ratings team rates RIVERBED TECHNOLOGY INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate RIVERBED TECHNOLOGY INC (RVBD) a HOLD. The primary factors that have impacted our 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 revenue growth, compelling growth in net income and good cash flow from operations. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet."