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Blue Coat completes acquisition of NetCache assets from Network Appliance

  • United Arab Emirates: Sunday, September 17 - 2006 at 12:35
  • PRESS RELEASE

Blue CoatŪ Systems (NASDAQ: BCSI), a leader in secure content and application delivery, today announced that it has completed the acquisition of assets of NetCacheTM business from Network Appliance (NASDAQ: NTAP).

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  • Ray Kafity, Blue Coat Middle East general manager.
    Ray Kafity, Blue Coat Middle East general manager.
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 Ray Kafity, Blue Coat Middle East general manager.

"The addition of the NetCache customers further strengthens our ability to be successful in the emerging application delivery infrastructure industry."
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Notes and media contacts

Conference Call & Webcast
The Company will host a conference call on October 2, 2006 to provide updated revenue guidance. An audio Webcast of the call will also be available at: http://www.bluecoat.com/aboutus/investor_relations.

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.

For more information, please contact:
Blue Coat
Dubai Internet City, Cannon building 9, office 313
P.O. Box 72377
Dubai - UAE
Tel: (971-4) 391-1620
FAX: (971-4) 391-1635

For media requests, please contact:
Layth Dajani
The CONTENT Factory
P.O. Box 29764, Dubai - United Arab Emirates
Tel: +97143341880
Fax: +97184480574
Mobile: +971507145640

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