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AI World Conference & Expo · Boston, MA · December 11-13, 2017

Posts Tagged ‘opnet’

On Monday, October 29th (Hurricane Sandy day!), Riverbed announced its intention to purchase one of the APM market leaders, Opnet, for a shade under a billion dollars ($43/share), which represents about a 30% premium over OPNET’s current market cap. To finance the deal, Riverbed will use some debt being financed by Morgan Stanley and Goldman Sachs. OPNET will do a shade under $200 million this year, which, when combined with Riverbed’s expected $834, will push Riverbed over the billion-dollar revenue mark for the first time in its history.

This should be a great acquisition for Riverbed as the Opnet products will nicely complement the products in the company’s Cascade business unit. Riverbed jumped into the network management market after it acquired Mazu Networks in 2009 and CACE Technologies in 2010. The two combined gave Riverbed both a macro-level view (Mazu) of the network with the ability to drill down with micro-level analysis (CACE). However, as strong as the product was, its sweet spot was mid-market and below.

The long-awaited IPO for DDI (DNS, DHCP and IP Address Management) finally happened and, like Splunk the day before it, BLOX rocked. It opened at $16 and got as high as $23 and change during the trading day, settling in nicely at just under $21 per share.

It’s nice to see tech IPOs back and doing well. A few people have asked me if I thought this IPO was sustainable, and my answer each time was an emphatic “YES,” for the following reasons.

First, despite some of the recent tech misses this quarter, technology is on the upswing. I think the recent quarterly misses were more due to internal execution problems than a weak macro. So a good tech market will itself fuel more interest.



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