Barracuda Networks Announces Financing and Recapitalization

Barracuda Networks Inc. has completed a financing and recapitalization in which Francisco Partners and Sequoia Capital have increased their ownership in the company with a $130 million new investment. In addition, Barracuda Networks declared a cash dividend on its common stock of $0.96 per share payable to shareholders of record as of October 2, 2012.

With over 150,000 customers, Barracuda Networks is disrupting the IT infrastructure landscape by simplifying many of the most complex IT challenges with its proven customer-centric portfolio of subscription-based IT solutions. The company has achieved profitability and significant growth every year since its inception.

“Over the past nine years, Barracuda Networks has developed a worldwide brand and reputation as the go-to leader for powerful yet easy-to-use IT solutions,” said David Faugno, chief financial officer, Barracuda Networks. “Our proven business model continues to deliver exceptional value to our customers and partners alike. We are thrilled to be able to allow our shareholders to benefit from the company’s success, as well as to have this significant new commitment from some of the most respected technology investors in the industry.” “We have enjoyed working with Barracuda Networks for the past seven years,” said David Golob, partner, Francisco Partners. “Our new investment represents an acknowledgement of the company’s past achievements, and, more importantly, our confidence that the company will continue to successfully innovate and execute in the years ahead."

“In an industry focused on complex, expensive point solutions, Barracuda Networks stands out for giving its customers everything they need to solve IT problems in an easy to use, cost efficient manner,” said Jim Goetz, partner, Sequoia Capital. “Given the company’s disruptive business model, broad product portfolio, and maniacal customer support, Barracuda Networks is poised to dominate its market.”

Barracuda Networks is well recognized as the leading provider of solutions that simplify IT and protect businesses. The company’s subscription-based product portfolio spans security, networking and application delivery, storage and data protection solutions. Additionally, Barracuda Networks continues to grow its landslide of industry praise, including:

• In the last two years, the company’s worldwide customer base grew from 85,000 to 150,000 customers, and IDC named Barracuda Networks the unit volume leader in content security appliances once again in 2011.

• Info-Tech Research Group listed Barracuda Networks as an “Innovator” in the Vendor Landscape report, “Application Delivery Controllers: It’s more than just load balancing” published September 2012.

• IDC named Barracuda Networks a “Leader” in the IDC MarketScape, “Worldwide Web Security Products 2011-2012 Vendor Analysis” published October 2012.

• The Barracuda NG Firewall was named Best Enterprise Firewall in the 2012 SC Magazine awards.

Barracuda Networks shareholders of record will be receiving correspondence related to the dividend this week. Any additional questions should be directed to shareholder(at)barracuda(dot)com.

ABOUT BARRACUDA NETWORKS
Winner of numerous industry honors, including Network Computing's Editor's Choice Award and the 2004 and 2005 Well-Connected Awards, its flagship product, the Barracuda Spam Firewall, provides protection for over 30,000 customers throughout the world, including Adaptec, Knight Ridder, Caltrans, CBS, Georgia Institute of Technology, IBM, NASA, Pizza Hut, Union Pacific Railroad, and the U.S. Treasury Department. Barracuda Networks is headquartered in Mountain View, CA, and has offices in eight international locations and distributors in over 43 countries.