SAN FRANCISCO (AP) -- Riverbed Technology Inc. said Monday that it will acquire Opnet Technologies Inc. for $1 billion in cash and stock, enabling Riverbed to expand into helping clients manage performance of their computer applications.
Riverbed, which already has a business geared toward network performance, agreed to acquire Opnet for $43 per share in cash and stock. The companies said the stock value of the transaction was $1 billion, with the enterprise value at $921 million.
Opnet shareholders would receive $36.55 in cash for each share owned, as well as 0.2774 of a share of Riverbed common stock. Based on the closing prices of the two stocks on Friday, Opnet shareholders would receive a more than 33 percent premium on the value of their shares.
Opnet closed at $32.10 on Friday, and Riverbed at $22.62. U.S. stocks markets were closed Monday as Hurricane Sandy neared landfall on the East Coast.
Opnet, based in Bethesda, Md., will be combined with the Cascade business unit of Riverbed. Together, the businesses are expected to generate more than $250 million in annual revenue.
Riverbed, a San Francisco-based information-technology provider, reported $726 million in revenue last year. Chairman and CEO Jerry Kennelly said the transaction with Opnet "transforms Riverbed into a billion-dollar revenue company."
The transaction is expected to close before the end of the year, subject to conditions including regulatory clearance. Riverbed said it will finance the cash portion of the transaction through its cash on hand, as well as new debt. The acquisition is expected to begin adding to Riverbed's adjusted earnings next year.
Opnet, founded in 1986, provides software and services to manage applications and networks.
Separately, Opnet on Monday reported net income of nearly $3.9 million, or 17 cents per share, for the three months ended Sept. 30. That was down 19 percent from earnings of nearly $4.8 million, or 21 cents per share, in the year-ago period. Revenue rose to $47.1 million from $41.9 million.