Elliot Management announced yesterday that its wholly owned Private Equity Subsidiary, Evergreen Coast Capital Partners, announced a deal to acquire Gigamon. Gigamon is a market leading provider of what it calls traffic visibility solutions and what many refer to as network packet brokers.
Gigamon has always delivered premium solutions and extracted premium pricing--the most often-quoted competitive phrase in the space is that we are <insert percentage--33-50% or more> less than Gigamon. Yet Gigamon has continued to deliver innovative solutions and grow in the enterprise and service provider markets. Recently its focus on enabling security solutions has resulted in significant growth. The company was able to successfully transition from a VC-backed private company to a public company. While this transition was not without its challenges along the way – it is difficult to keep up a 30-40% growth rate indefinitely - the leadership team has worked diligently to keep the company on track. It is now entering a new phase by returning to private ownership under a Private Equity firm. So, what does that mean?