Investment firms Elliott Investment Management and Siris are exploring a sale of network-infrastructure software company Gigamon at a valuation exceeding $2 billion, highlighting continued investor appetite for the tools enterprises use to see what is happening inside increasingly complex cloud networks.
Reuters reported that Elliott and Siris have engaged Bank of America and Perella Weinberg Partners to advise Gigamon on an early-stage sale process that could value the company above $2 billion.
The process could attract both private-equity firms and strategic buyers seeking exposure to network monitoring, cybersecurity and cloud-infrastructure management.
Gigamon makes networks visible to security tools
Gigamon is not a conventional application-software company.
Its Deep Observability Pipeline provides network-derived telemetry to security, cloud and observability systems, allowing those tools to inspect traffic moving across physical infrastructure, virtual environments, public clouds and containers.
The company says it currently serves more than 4,000 customers and works with more than 200 technology partners.
Siris, which acquired a minority investment in Gigamon in late 2023, says the customer base includes more than 80 Fortune 100 companies, major banks, healthcare organizations, mobile operators and U.S. federal agencies.
That customer profile helps explain why observability infrastructure can command large valuations despite operating mostly invisibly to end users.
The potential deal comes with substantial recurring revenue
Reuters reported that Gigamon generates more than $400 million in annual recurring revenue and roughly $170 million in EBITDA, according to people familiar with the matter.
Elliott originally took Gigamon private in 2017 in a transaction valued at approximately $1.6 billion. Siris subsequently bought its minority stake.
Neither Gigamon, Elliott nor Siris commented on the possible sale, and Reuters stressed that discussions remain at an early stage. A transaction therefore is not guaranteed.
AI and hybrid cloud are creating more traffic to inspect
The strategic value of network visibility is also increasing.
Gigamon cited 650 Group research showing it held 51% of the deep-observability market in 2025, while the market grew 18% year over year. The research projects cloud-delivered deep-observability products will account for 54% of a nearly $2.1 billion market by 2030.
The underlying engineering problem is straightforward: cloud systems are becoming distributed across more environments while AI introduces additional machine-to-machine traffic that security teams still need to inspect.
Logging an application tells engineers what the application reports. Network telemetry can provide another source of evidence about what systems are actually communicating.
That makes observability increasingly important not only for debugging but for cybersecurity, compliance and AI governance.
A possible $2 billion-plus Gigamon transaction therefore reflects a wider infrastructure trend: as software systems become harder to see, the companies selling visibility into those systems become more strategically valuable.
