Filing Flows › A10 Networks (ATEN) › Takeover & LBO
Is A10 Networks (ATEN) a takeover target?
A leveraged buyout at today's price plus 30% ($38.52 a share) would return a loss of about 0% a year to a private-equity buyer over 5 years; no price, however low, gets a buyer to 20%. Historically 5.8% of companies with its figures were bought within a year (1.15× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $38.52 | today's $29.63 plus 30% |
| × shares | 75.7 million | |
| = Equity value | $2.9B | |
| + Debt refinanced | $0 | |
| − Cash | $357M | |
| = Enterprise value | $2.6B | 38.6× EBITDA of $66.3M |
| Fees | $51.1M | 2% of the price |
| New debt | $365M | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $2.2B | 86% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $335M | $71.6M | $27.9M | $18.9M | $346M |
| Year 2 | $358M | $76.4M | $26.4M | $23.2M | $322M |
| Year 3 | $377M | $80.6M | $24.7M | $27.5M | $295M |
| Year 4 | $393M | $84.0M | $22.6M | $31.7M | $263M |
| Year 5 | $405M | $86.6M | $20.1M | $35.6M | $228M |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 28.4× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $2.5B | |
| − Debt left | $228M | |
| = Buyer's equity | $2.2B | |
| Money multiple | 1.00× | on $2.2B put in |
| Buyer's yearly return (IRR) | −0.1% |
Price against return
What the buyer makes at other premiums over today's $29.63.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $32.59 | 4.6% |
| 20% | $35.56 | 2.1% |
| 30% | $38.52 | −0.1% |
| 40% | $41.48 | −2.0% |
| 50% | $44.45 | −3.7% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $310M | |
| EBITDA, last 12 months | $66.3M | 21.4% of revenue |
| Depreciation and amortization | $16.2M | |
| Capital spending | $15.9M | |
| Debt | $0 | |
| Cash | $357M | |
| Share price | $29.63 | on Oct 9, 2026 |
Fixed rules, the same as the interactive view's starting point: the shares are bought at today's price plus 30%, the company's debt is refinanced and fees take 2%. New debt is the least of 5.5× EBITDA, 65% of the price and the amount whose interest EBITDA covers 2 times, at 7.65% a year (SOFR 3.89% plus the high-yield B spread 3.26% plus 0.5%, rates of Oct 15, 2026). Revenue grows 8.0% in the first year — the company's own rate, held between −3% and +8% — fading to 3% by year 5; the EBITDA margin, depreciation and capital spending stay at today's share of revenue; working capital takes 10% of each year's added revenue; tax is 20% of profit after interest. Every dollar of free cash flow repays debt. After 5 years the buyer sells at today's multiple of EBITDA.
What a takeover could cost
Takeovers in its sector paid a median premium of 30% over the share price before the deal (the middle half 12% to 31%), according to the 14 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, A10 Networks would cost about $38.52 a share, $2.9B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 12% | $33.19 | $2.5B |
| Median | 30% | $38.52 | $2.9B |
| High end (a quarter paid more) | 31% | $38.82 | $2.9B |
The odds, from history
Historically 5.8% of companies with its figures were bought within a year (1.15× the average). Its figures put it in decile 7 of 10 (10 = the most likely to be bought). The odds come from a model of every merger proxy, tender-offer response and going-private statement filed on EDGAR since 2011, set against each company's size, margins, debt, cash flow and growth the year before.
A10 Networks' latest quarter
A10 Networks, Q3 2026: revenue $91.5M (+23% year over year), operating margin 20.0%, net earnings $17.2M, operating cash flow $34.0M. The chart follows the revenue to costs, profit and cash.
Questions
Is A10 Networks being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy A10 Networks?
A leveraged buyout at today's price plus 30% ($38.52 a share) would return a loss of about 0% a year to a private-equity buyer over 5 years; no price, however low, gets a buyer to 20%.
What would a takeover of A10 Networks cost?
Takeovers in its sector paid a median premium of 30% over the share price before the deal (the middle half 12% to 31%), according to the 14 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, A10 Networks would cost about $38.52 a share, $2.9B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.