The ideal for every business (and investor) is to seamlessly transition
from one growth opportunity to another, harvesting cash flow from older
businesses and reinvesting it into new opportunities that can continue
to expand the business. Not many companies can do this completely on
their own, however, and must rely upon acquisitions to improve their
growth prospects. That would appear to be the case with
Riverbed Technology (Nasdaq:
RVBD),
as it has agreed to spend approximately $1 billion in cash and stock to
expand into the fast-growing application performance management market.
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