Networking company Riverbed Technology Inc. (NASDAQ: RVBD) has agreed to a deal in which private equity firm Thoma Bravo and the private investor department of the Ontario (Canada) Teachers’ Pension Plan will take the company private at $21 a share for a total deal value of about $3.6 billion. The transaction is expected to close in the first half of 2015.

Riverbed CEO Jerry Kennelly, who will remain with the company as CEO, said:

Having undertaken a thorough strategic review, during which we assessed a wide variety of options to maximize value, the Board unanimously concluded that partnering with Thomas Bravo was the best choice for Riverbed, as this transaction will provide our stockholders with significant and immediate cash value.

Since late last year Riverbed has been getting encouragement to do just that. In November of 2013, Elliott Management reported that it had acquired a stake of about 10.4% in Riverbed and would continue pushing for “strategic changes” and a review of the company’s capital structure. Elliott had increased its stake to 11.1%, and in October of this year it affirmed an earlier offer of $21 a share to buy out the company.

Elliott also signed a standstill agreement with Riverbed, and Monday’s announcement is not likely to sit well with Elliott. One obvious takeaway from the announced deal is that Riverbed’s CEO will stay, and that almost certainly would not have been the case if Elliott had prevailed.

The buyout price represents a premium of 12% to Friday’s closing price and may not be the last offer that hits the table. Since Elliot first revealed its stake in Riverbed, the networking company’s stock has gained more than 30%. Elliott has so far not commented on the transaction.

Shares of Riverbed were trading up about 9.2% Monday, at $20.46 in a 52-week range of $16.70 to $22.76.

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