Activist investor Elliott Investment Management and Siris Capital are considering a sale of network infrastructure software provider Gigamon in a deal that could value the company at more than $2bn, according to a report by Reuters citing unnamed people familiar with the matter.

The firms have appointed Bank of America and Perella Weinberg Partners to advise on a potential transaction, which remains at an early stage, the sources said. The discussions are confidential.

The process could draw interest from both private equity investors and strategic buyers looking to strengthen their exposure to network monitoring, cybersecurity and cloud infrastructure management.

Gigamon, headquartered in Santa Clara, California, develops software that enables businesses to monitor network traffic and identify security threats. The company was founded in 2004 and has more than 4,000 customers worldwide, including financial institutions, healthcare organisations and government agencies.

The business generates more than $400m in annual recurring revenue and approximately $170m in EBITDA, according to the sources.

Gigamon, Elliott, Siris and Bank of America reportedly declined to comment, while Perella Weinberg Partners reportedly did not respond to a request for comment.

Elliott took Gigamon private in 2017 in a transaction that valued the company at roughly $1.6bn. Siris subsequently acquired a minority stake in the business in 2024.