U.S. network security firm Infoblox Inc (BLOX.N) said on Monday it had agreed to be bought by private equity firm Vista Equity Partners Management LLC for $1.6 billion.

Vista’s offer of $26.50 per share in cash represents a premium of about 16 percent to Infoblox’s Friday closing price.

Infoblox’s shares were up about 14 percent at $25.99 in premarket trading.

Reuters reported last month that Infoblox had launched an auction to sell itself after coming under pressure from activist fund Starboard Value LP to do so.

The deal with Vista was first reported by Fortune Magazine.

The deal, recommended by Infoblox board, is expected to close in Infoblox’s second quarter.

Morgan Stanley is Infoblox’s financial adviser and Fenwick & West LLP its legal adviser. Vista’s legal adviser is Kirkland & Ellis LLP.