NEW YORK (TheStreet) -- Shares of Riverbed Technology (RVBD) are climbing, slightly higher by 0.15% to $20.34 on heavy trading volume, adding to its gains from yesterday after the telecommunications equipment company agreed to be acquired by private equity firm Thoma Bravo LLC for about $3.6 billion, the Wall Street Journal reported.
Under the terms of the deal, Riverbed shareholders will receive $21 per share, matching a previous offer from activist shareholder Elliott Management Corp., the Journal added.
Riverbed CEO Jerry Kennelly said in a statement yesterday 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 noted.
San Francisco-based Riverbed develops solutions to the fundamental problems associated with information technology performance across wide area networks.
About 5.3 million shares of Riverbed have traded hands as of 11 a.m. today, compared to its average daily trading volume of about 1.95 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."