Wednesday, April 22, 2015

Procera to be Acquired by Private Equity Firm for $240 Million

Procera Networks has signed a definitive agreement to be acquired by private funds managed by Francisco Partners Management, a technology-focused private equity firm, in an all-cash transaction valued at approximately $240 million. Under the deal, Francisco Partners will acquire all outstanding shares of Procera’s common stock for $11.50 per share in cash, representing a premium of approximately 21% over the closing price of Procera’s common stock on April 21, 2015, and a premium of approximately 32% over the unaffected closing price on January 22, 2015, the last day prior to an article reporting the potential sale of the company.

“As part of Francisco Partners’ portfolio of companies, Procera will have the resources and financial expertise needed to attain the next level of growth and to strengthen our competitive market position,” said James Brear, President and CEO of Procera. “I believe this transaction delivers compelling value to our stockholders, and we remain firmly committed to establishing Procera as the leader in improving the customer broadband experience for carriers and operators.”

Procera also announced preliminary results for Q1 2015, saying revenue is expected to be in the range of $19.5 million to $20.5 million. The ratio of bookings to revenue for the first quarter was below one. The company expects the gross margin percentage to be approximately 60% and to incur a net operating loss on a GAAP and non-GAAP basis for the first quarter of 2015. The company is not revising its previously announced guidance for the full year.


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