Enterasys Networks on Monday said it has signed an agreement to be acquired by a private investment group in a deal valued at $386 million.
The investment group is led by The Gores Group and Tennenbaum Capital Partners. Gores acquired Enterasys&' Aprisma network management unit in 2002 and sold it to Concord Communications earlier this year. Concord and its Aprisma subsidiary are now owned by Computer Associates International.
The acquisition will turn publicly traded Enterasys into a private company, a move that Enterasys President and CEO Mark Aslett said would open doors for the networking and security vendor.
“Looking forward, we believe operating as a private company with the backing of Gores and Tennenbaum will enable us to capture market opportunities not available to us today,” Aslett said in a statement. “Both investment firms have a long-term view and established track records of successfully working with company management to help companies succeed, especially in industries expected to see significant change.”
Enterasys&' senior management team is expected to continue to lead the company, which will maintain its Andover, Mass., headquarters.
Under terms of the deal, expected to close next quarter, the investment group will pay shareholders $13.92 in cash per share, a premium of 32 percent over Enterasys&' closing price Friday.