Original bidder for Sandvine matches rival offer
WATERLOO — The original bidder for Waterloo tech firm Sandvine has matched an offer from a rival suitor.
An affiliate of San Francisco-based private equity firm Vector Capital has offered to pay $4.15 per share to acquire Sandvine in a deal that values the company at about $529 million.
The offer from Vector affiliate Scalar Acquireco Corp. matches one announced June 27 from an affiliate of U.S. private equity firm Francisco Partners. A so-called “go-shop” period, in which Sandvine can solicit better offers, remains in effect until 11:59 p.m. Friday.
This corporate back-andforth began in May, when Sandvine announced a proposed deal with Vector that would return Sandvine to its roots as a private company. Founded in 2001, Sandvine manufactures hardware and software that manages internet networks. It went public in 2006.
The initial Vector offer was worth $3.80 per share, for a total value of $483 million. That original deal gave Sandvine 42 days to solicit superior proposals.
In a news release issued after the markets closed Thursday, Sandvine said its board and a special committee have approved the re-
vised Vector offer, and have recommended that shareholders vote in favour at a meeting scheduled for July 18.
The offer from Francisco Partners drew concern from internet watchdog The Citizen Lab, based at the University of Toronto’s Munk School of Global Affairs.
Companies controlled by Francisco Partners have provided technology to governments in countries such as Turkey, Mexico and the United Arab Emirates, where critics say it has been used to spy on citizens.
Sandvine’s “deep packet inspection” technology is a “dual-use technology” that could be used for either benign purposes or mass or targeted surveillance, Citizen Lab director Ron Deibert cautioned.
Sandvine shares gained three cents Thursday to close at $4.25 on the Toronto Stock Exchange.