Blue Coat Systems Shares Soared: What You Need to Know

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of networking specialist Blue Coat Systems (NAS: BCSI) are soaring high today, up by as much as 45% after the company announced it was being acquired.

So what: San Francisco based private equity firm Thoma Bravo is picking up the company in a $1.3 billion all-cash deal. The agreement values Blue Coat at $25.81 per share, a massive 48% premium over yesterday's close.

Now what: Blue Coat has had its fair share of troubles in recent times, from ditching its CEO in August to falling revenue (even if it beat expectations). The company has been suffering at the hands of able competitors like Websense (NAS: WBSN) in web security and Riverbed Technology (NAS: RVBD) and F5 Networks (NAS: FFIV) in WAN optimization. It will be the fifth security technology platform investment for Thoma Bravo, and this is the best end result that Blue Coat shareholders could have hoped for.

Interested in more info on Blue Coat Systems? Add it to your watchlist byclicking here.

At the time this article was published Fool contributorEvan Niuowns shares of Riverbed Technology, but he holds no other position in any company mentioned.Click hereto see his holdings and a short bio.Motley Fool newsletter serviceshave recommended buying shares of Riverbed Technology.Motley Fool newsletter serviceshave recommended writing covered calls in Riverbed Technology. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

Copyright © 1995 - 2011 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story