I think mgmt would be interested in an all stock deal or stock cash deal with RVBD...it gives them the ability to do a non-taxable transaction and gives them the opportunity for additional upside.
1.5 shares of RVBD or $54 a share...and I think RVBD moves higher on that deal...possibly to $38 becuase the deal would be immediately accretive to earnings without any additional debt...not really diluting shareholders of RVBD because RDWR has higher growth than RVBD adnd the deal would pay under 40X revs for RDWR....RVBD trades at almost 48x...and it would add .02 to RVBD's 2011 EPS...which puts RVBD's price at $37.66...the all stock deal makes sense for both because it gives RDWR owners a tax free transfer and the ability to still grow with RVBD while gaining a 17% stake in RVBD...