WATERLOO, Ont. – Sandvine Corp. (TSX:SVC) has switched allegiance to a new takeover offer worth $562 million, about 16.5 per cent more than its original suitor was going to pay before a rival came forward late last month.
Francisco Partners is offering $4.40 per share cash for Sandvine and intends to combine the Waterloo, Ont.-based company with Procera Networks, Inc. of Fremont, Calif.
Both Sandvine and Procera provide technology used by communications networks to manage costs and subscribers.
A special meeting of Sandvine shareholders that was scheduled for Tuesday has been postponed to an undetermined date.
The bidding for Sandvine began in May when it accepted a friendly offer of $3.80 per share from an affiliate of Vector Capital.
Vector matched its rival’s original bid of $4.15 per share, announced June 27, but didn’t move again after Franciso hiked its offer to $4.40 on July 7.
Sandvine announced Monday that it has ended the relationship with Vector and paid it about $16.9 million as part of their initial arrangement.
Francisco Partners plans for Procera CEO Lyndon Cantor and Procera chief financial officer Richard Deggs to lead the combined company, which will retain the Sandvine name.
“Sandvine has done a tremendous job becoming a leader in its market,” Cantor said in a statement.
Dave Caputo, Sandvine’s president and chief executive officer, will join the combined company’s board of directors and become its non-executive chairman.