Sandvine Corp (SVC.TO) said on Monday it had terminated a deal with Vector Capital and accepted a higher offer from a unit of private equity firm Francisco Partners and Procera Networks Inc, valuing the network equipment maker at about $562 million.

Francisco and networking equipment maker Procera will pay $4.40 per Sandvine share.

Sandvine will be merged with Procera, whose Chief Executive Lyndon Cantor will lead the combined entity.

Earlier this month, Sandvine had accepted an amended offer from Vector Capital's unit, Scalar Acquireco Corp, for $4.15 per share, valuing Sandvine at about $529 million.

Shares of Sandvine were down 2 per cent at $4.35. Up to Friday's close, the company's stock had risen nearly 40 per cent since Vector Capital's initial offer in May.

California-based Procera provides network visibility and control across mobile and fixed broadband networks.

The combined company will serve over 400 communications service providers, with over 1 billion subscribers in more than 100 countries, Andrew Kowal, partner at Francisco Partners, said in a statement.

Sandvine retained Canaccord Genuity as its exclusive financial adviser, while Procera was advised on the transaction by J.P. Morgan Securities.