Ontario Teachers’ Pension Partners With PE Firm to Buy Computer Networking Company

flying moneyThe Ontario Teachers’ Pension Plan is no stranger to direct investing – the pension fund has an entire arm devoted to it, called Teachers’ Private Capital (TCP).

It was revealed Monday morning that TCP, along with a private equity firm, have agreed on terms to buy computer-networking company Riverbed Technology Inc.

Reported by Bloomberg:

Riverbed Technology Inc. (RVBD), under pressure from activist investor Elliott Management Corp., agreed to be acquired for about $3.6 billion by private-equity firm Thoma Bravo and pension investment group Teacher’s Private Capital.

Riverbed stockholders will receive $21 a share in cash, Riverbed said in a statement today. The agreement represents a 12 percent premium over Riverbed’s Dec. 12 closing price. The computer-networking company said in October it hired advisers to review strategic alternatives.

Elliott acquired a 10 percent stake in Riverbed last year and pushed the company to examine the business, saying it was “significantly undervalued.” It made an unsolicited bid in January and raised the offer to $21 a share the following month. Since then Elliott has been in a tug of war with Chief Executive Officer Jerry Kennelly about selling his company.

“We’re delighted with this outcome that gives shareholders immediate, premium value,” Jesse Cohn, Elliott’s activist portfolio manager, said in a statement today.

Riverbed jumped 9.4 percent to $20.50 at 9:31 a.m. New York time. The shares had gained 5 percent since Jan. 7, the last trading day before Elliott made its first bid, through yesterday.

Kennelly will remain with Riverbed in the same position, the company said today.

Earlier this year, Thoma Bravo was one of several buyout firms including Silver Lake Management LLC and KKR & Co. that informally expressed interest in San Francisco-based Riverbed with offers approaching $25 a share, said people with knowledge of the process at the time.


Photo by 401kcalculator.org

Ontario Teachers’ Pension Names New Director of Europe, Middle East and Africa Investments

Canada blank mapThe Ontario Teachers’ Pension Plan has appointed private equity veteran Jo Taylor to the post of Managing Director for Europe, Middle East and Africa (EMEA). Taylor will also head the pension fund’s London office.

From an OTPP release:

In his new role, Mr. Taylor retains primary responsibility for Teachers’ Private Capital and private equity investments in the region while assuming oversight for the full cycle of opportunity origination, analysis, value creation and execution of investment activities across asset classes.

In addition to setting the tone and direction of Teachers’ investment activities in the EMEA market, Mr. Taylor, who joined the organization in 2012, will guide all advisory relationships within the region and becomes a member of Teachers’ Investment Committee.

“Jo’s expanded role reflects our commitment to growing our global presence and deepening our long-term relationships with our partners in key markets. His experience, relationship-building skills and his deal and market knowledge make him the ideal person for this new position,” said Neil Petroff, Teachers’ Executive Vice-President and Chief Investment Officer.

Teachers’ will be opening an expanded London office at Portman Square in 2015 to accommodate a larger, multi-asset-class team. Teachers’ established its London office in 2007. It has a diverse portfolio of assets in the region valued at approximately $21 billion as of December 31, 2013.

The Ontario Teachers’ Pension Plan manages $140 billion in assets.