Blue Coat completes acquisition of Netcache assets from Network Appliance
Blue Coat Systems announced that it has completed the acquisition of assets of NetCache business from Network Appliance. On June 23, 2006, Blue Coat announced the execution of an asset purchase agreement to acquire the assets of the NetCache business. The final consideration for the transaction included approximately $23.9 million in cash and 360,000 shares of Blue Coat common stock. The cash proceeds were funded with a portion of the proceeds from the investment by Francisco Partners and Sequoia Capital in June 2006.
Blue Coat and Network Appliance have also entered into transition services agreements to continue product availability and support for NetCache customers, including continuing manufacturing services as well as sales, service and support. In connection with the close, Blue Coat received information that will enable the Company to provide updated revenue guidance in early October 2006, including the impact of the NetCache acquisition.
“Blue Coat, along with Network Appliance, is committed to continuing to serve NetCache customers, while providing a seamless transition to the Blue Coat platform,” said Brian NeSmith, president and chief executive officer of Blue Coat Systems. “The addition of the NetCache customers further strengthens our ability to be successful in the emerging application delivery infrastructure industry.”