Blue Coat Completes Acquisition of NetCache Assets from Network Appliance
SUNNYVALE, Calif., September 11, 2006 -- Blue Coat® Systems, Inc. (Nasdaq: BCSI), a leader in secure content and application delivery, today announced that it has completed the acquisition of assets of NetCache™ business from Network Appliance (NASDAQ: NTAP). On June 23, 2006, Blue Coat announced the execution of an asset purchase agreement to acquire the assets of the NetCache business. The final consideration for the transaction included approximately $23.9 million in cash and 360,000 shares of Blue Coat common stock. The cash proceeds were funded with a portion of the proceeds from the investment by Francisco Partners and Sequoia Capital in June 2006.
Blue Coat and Network Appliance have also entered into transition services agreements to continue product availability and support for NetCache customers, including continuing manufacturing services as well as sales, service and support. In connection with the close, Blue Coat received information that will enable the Company to provide updated revenue guidance in early October 2006, including the impact of the NetCache acquisition.
“Blue Coat, along with Network Appliance, is committed to continuing to serve NetCache customers, while providing a seamless transition to the Blue Coat platform,” said Brian NeSmith, president and chief executive officer of Blue Coat Systems. “The addition of the NetCache customers further strengthens our ability to be successful in the emerging application delivery infrastructure industry.”
ABOUT BLUE COAT SYSTEMS
Blue Coat secures Web communications and accelerates business applications across the distributed enterprise. Blue Coat’s family of appliances and client-based solutions – deployed in branch offices, Internet gateways, end points, and data centers – provide intelligent points of policy-based control enabling IT organizations to optimize security and accelerate performance between users and applications. Blue Coat has installed more than 25,000 appliances worldwide and is ranked #1 by IDC in the Secure Content and Application Delivery segment. Blue Coat is headquartered in Sunnyvale, California, and can be reached at (408) 220-2200 or www.bluecoat.com.About Sequoia Capital
Sequoia Capital provides venture capital funding to founders of startups who want to turn business ideas into companies. As the "Entrepreneurs Behind the Entrepreneurs", Sequoia Capital's Partners have worked with innovators such as Steve Jobs of Apple Computer, Larry Ellison of Oracle, Bob Swanson of Linear Technology, Sandy Lerner and Len Bozack of Cisco Systems, Dan Warmenhoven of Network Appliance, Jerry Yang and David Filo of Yahoo!, Jen-Hsun Huang of nVIDIA, Michael Marks of Flextronics, Larry Page and Sergey Brin of Google, Chad Hurley and Steve Chen of YouTube and Dominic Orr and Keerti Melkote of Aruba Wireless Networks. To learn more about Sequoia Capital visit www.sequoiacap.com.
Contact:
Jim Goetz
SEQUOIA CAPITAL
goetz@sequoiacap.com
