What happened

Shares of Barracuda Networks Inc. (NYSE: CUDA) rose 18.6% in November, according to data from S&P Global Market Intelligence, after the cloud security and data protection solutions specialist agreed to be acquired.

After largely trading flat for most of last month, just over a week ago Barracuda Networks announced it had entered an agreement to be acquired by private equity investment firm Thoma Bravo for $27.55 per share. That price propelled the stock to above its 52-week high, and represented a 22.5% premium to its 10-day average closing price at the time. 

Networking equipment with Ethernet cables plugged into it.

IMAGE SOURCE: GETTY IMAGES.

So what

Barracuda Networks' board unanimously approved the all-cash deal, voicing its belief that "the transaction maximizes shareholders value." In addition, Barracuda Networks CEO BJ Jenkins noted that going private with the resources and partnership of Thoma Bravo -- which is known for investing in fast-growing security businesses -- the company should be able to accelerate its growth.

Now what

As I pointed out shortly after the initial announcement, some investors might be upset by the fact that it arrived before the stock had fully recovered from a big post-earnings drop in October. In the days following the announcement, several law firms have already stepped out to launch investigations into whether Barracuda Networks' board fulfilled its duty to shareholders, particularly as it relates to whether the agreed acquisition price was too low.

Of course, such investigations are common in these kinds of scenarios, so there's no guarantee that Barracuda Networks investors will ultimately receive a better price for their shares. As it stands, the company continues to expect the transaction to close before the end of February 2018, pending shareholder and regulatory approval.