Investment agitator and vulture Elliott Management have acquired network monitoring firm Gigamon for $1.6bn. Gigamon have recently posted third quarter results (Gigamon Third Quarter 2017 Financial Highlights). These show revenue and profits down over the quarter.
Given that Gigamon’s primary product lines are high bandwidth network monitors and taps, this is unsurprising. The physical network monitoring market is still adapting to the changes introduced by the rise of east-west traffic in the data centre, compared to the traditional north-south model physical appliances are more suited for. They have recently tried to plug the gap with virtual appliances to address the virtualised space space, with both VMware ESXi and NSX versions, Microsoft Azure, Amazon AWS and OpenStack.
This move will take the comany private, removing the NYSE:GIMO 38,50 0,00 0,00% from the NYSE.
“We are pleased to announce this transaction, which delivers immediate cash value to our shareholders upon closing at a premium to our unaffected stock price. The Gigamon Board, with the assistance of independent financial and legal advisors, conducted a thorough review of options to enhance shareholder value and unanimously concluded that entering into this agreement with Elliott represents the best way to maximize value. We remain committed to our mission-critical role and to the success of our customers, employees and partners. Elliott and Evergreen have deep technology experience and share our long-term vision for next-generation traffic visibility across on-premises, cloud and hybrid infrastructure.” – Paul Hooper, CEO, Gigamon
“As the leading provider of visibility solutions that enable enterprises to guard against network and data breaches, Gigamon has a strong track record of innovation and delivering customer value that makes it a compelling investment,” “In partnership with Evergreen Coast Capital, our private equity affiliate, this is a landmark transaction in our long history of investing in leading enterprise technology businesses. We look forward to working with the management team and employees of Gigamon to build on the Company’s leadership and extend its global relationships with customers and partners.” – Jesse Cohn, Partner, Elliott
Gigamon Press-release: (Gigamon enters into definitive agreement to be acquired by Elliott Management)