Blue Coat Gets VC Money, Makes Acquisition

By Chris Preimesberger  |  Posted 2006-06-23 Print this article Print

Security appliance maker Blue Coat Systems announces $42 million in venture capital investment as well as an acquisition of part of NetApp.

Security appliance maker Blue Coat Systems had a big day June 23, announcing a $42 million investment by venture capital firms Francisco Partners and Sequoia Capital and using an unspecified portion of the money to acquire the assets of the NetCache business from its Sunnyvale, Calif., neighbor, Network Appliance. NetApps NetCache product line is a scalable suite of Web delivery and security appliances. NetCache appliances currently power a number of large telecom networks and are deployed across entire networks—from the primary data center to remote locations and local offices, a NetApp spokesman said.
A Blue Coat spokesman said the company will utilize the moves to further augment the companys mission—to develop and use proxy technology to enable secure and accelerated delivery of applications and content to users.
Francisco Partners and Sequoia Capital purchased shares of Blue Coat Series A Preferred Stock, which are convertible into 2,400,000 shares of Blue Coat common stock at $17.525 per share for a total value of approximately $42 million, the spokesman said. The acquisition includes both cash and stock consideration, the spokesman said. The closing of the asset purchase is subject to customary conditions, and is expected to occur within 90 days, the spokesman said. Click here to read about Blue Coats purchase of security company Permeo. Blue Coat and NetApp have entered into a transition services agreement to continue product availability and support for NetCache customers, he added. "The acquisition of the NetCache business is a critical component of delivering on our vision of secure and accelerated delivery of applications and content to users," said Brian NeSmith, president and CEO of Blue Coat. "The foundational element of the application delivery infrastructure is the proxy, and existing NetCache customers certainly understand the power of the proxy." Check out eWEEK.coms for the latest news, views and analysis on servers, switches and networking protocols for the enterprise and small businesses.
Chris Preimesberger Chris Preimesberger was named Editor-in-Chief of Features & Analysis at eWEEK in November 2011. Previously he served eWEEK as Senior Writer, covering a range of IT sectors that include data center systems, cloud computing, storage, virtualization, green IT, e-discovery and IT governance. His blog, Storage Station, is considered a go-to information source. Chris won a national Folio Award for magazine writing in November 2011 for a cover story on and CEO-founder Marc Benioff, and he has served as a judge for the SIIA Codie Awards since 2005. In previous IT journalism, Chris was a founding editor of both IT Manager's Journal and and was managing editor of Software Development magazine. His diverse resume also includes: sportswriter for the Los Angeles Daily News, covering NCAA and NBA basketball, television critic for the Palo Alto Times Tribune, and Sports Information Director at Stanford University. He has served as a correspondent for The Associated Press, covering Stanford and NCAA tournament basketball, since 1983. He has covered a number of major events, including the 1984 Democratic National Convention, a Presidential press conference at the White House in 1993, the Emmy Awards (three times), two Rose Bowls, the Fiesta Bowl, several NCAA men's and women's basketball tournaments, a Formula One Grand Prix auto race, a heavyweight boxing championship bout (Ali vs. Spinks, 1978), and the 1985 Super Bowl. A 1975 graduate of Pepperdine University in Malibu, Calif., Chris has won more than a dozen regional and national awards for his work. He and his wife, Rebecca, have four children and reside in Redwood City, Calif.Follow on Twitter: editingwhiz

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