Procera Networks Inc (NASDAQ:PKT) has finally given its approval to $240 million buyout that is to be executed by Francisco Partners Management LP. As per the reports, the entire transaction is supposed to take place in cash.
The After Effects of Procera’s Approval:
Procera is a renowned network service company that offers analytics services to various companies and service providers. It is a private equity firm that mainly focuses on the technology. The deal seems to be a win-win situation for both the companies. As per the reports, Francisco Partners Management has offered an attractive price of $11.50 per share, which is 21% higher than Procera’s closing price on Tuesday.
The offered price is at par with the price that Procera’s shares previously traded at in the March 2014. When it came up with its IPO in 2003, its prices were $70 per share.
The company expects to have its revenue for the first quarter in the range of $19.5 to $20.5 million. It has also anticipated that it would suffer operating loss. Most of the analysts had expected the firm to witness sales of $17 million. The past few months have not been that great for the company. It didn’t only face internal issues, but external problems as well. The amount of pressure that was elevated when it failed to meet the customers’ expectations forced it to get ready for this buyout deal.
Even though the shareholders of the company have been offered good enough price per share, but still there is a huge potential for growing further. They have been offered lesser than 20% of the initial IPO price of the company. If the market conditions improve in the near future, then it might prove to be a not so good transaction for customers. The senior management of the company has decided not to comment on this transaction separately.