Tuesday, October 26, 2021

Enterasys sells, goes private

Enterasys Networks will become a private company, as it agreed to a US$386 million buyout offer by two private investment firms last month.

Enterasys, which makes LAN switches and routers, firewall, intrusion-detection and other network security gear, will be acquired by The Gores Group and Tennenbaum Capital Partners for US$13.92 per share.

“This transaction provides our shareholders with a substantial premium over the current market and enterprise values of the company,” said Mark Aslett, president and CEO of Enterasys, in a statement. “We believe operating as a private company with the backing of Gores and Tennenbaum will enable us to capture market opportunities not available to Enterasys today.”

Aslett and the Enterasys management team will remain in charge of the network company. The deal is expected to close by year-end.

Tennenbaum Capital Partners has more than US$3.7 billion under management.

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