GEO Investing

The ongoing proxy fight, activist involvement and 13D activity with Procera Networks has piqued GeoInvesting’s interest, especially given the fact that we are long another stock in MERU that the PKT activist is involved in.  Procera Networks, Inc. provides intelligent policy enforcement solutions based on deep packet inspection technology that enable mobile and broadband network operators and entities to manage and control their private networks.

On Oct 20, 2014, Merriman Capital’s Ronald Chez put out an open letter to comment the performance of the company and its management and it says:

“the Board of Directors evaluate all strategic alternatives, including the retention of an investment bank to help guide the process.”

Castle Union Files 13D

On Oct 28, 2014, Castle Union, the same activist investor in MERU, filed 13D with 5% of PKT, and in the purpose of transaction section, it says:

“The purpose of the acquisition of Shares is for investment. The Reporting Persons may engage with or otherwise have conversations with management of the Issuer to discuss business and strategic alternatives for the Issuer, including but not limited to, a potential sale of the Issuer.

On December 05, 2014, Castle Union further increased its stake to 6.6%, according to a 13D/A filing.

Please see the January 23, 2014 article and video by The Street titled “Procera Networks’ Exploring a Sale, Allot, Sandvine, F5, Cisco or Ericsson All Contenders” discusses the potential sale. Some highlights from article:

“Toan Tran, a managing partner of Castle Union, told The Deal in October that he believed Procera could be sold for $12 per share or more and that it could garner interest from strategics such as Sandvine, Allot, F5 Networks Inc. (FFIV), Cisco Systems Inc. (CSCO) and Ericsson Inc. (ERIC).”

“Castle Union told The Deal last month that it will launch a proxy fight and nominate at least four board members if Procera doesn’t publicly start a strategic review process by the end of January.”

See the full research note and insight.