Feeds

NAI to reorganize McAfee.com

Consumer split

  • alert
  • submit to reddit

Protecting against web application threats using SSL

ComputerWire: IT Industry Intelligence

It took six months, but Networks Associates Inc looks like it's finally managed to bring McAfee.com Corp, the anti-virus service provider it spun out in 1999, back into the fold,

Kevin Murphy writes

. The final purchase price is about $200m, and after the deal closed Friday McAfee.com ceased to exist as a separate company.

NAI said it had bought 96% of McAfee.com's outstanding shares, about 75% of which it already owned, which allows it to execute a short-form merger under Delaware company law. NAI will pay $8 cash and 0.675 of an NAI share for every McAfee.com share tendered, and those that were not.

The plan now, according to a company spokesperson, is to merge McAfee.com into NAI's McAfee Security division. This business will be split into two units, one focusing on the consumer space, one on the enterprise. Bill Kerrigan, a 19-year IBM veteran, has been hired to run McAfee Consumer, which will comprise retail sales and McAfee.com.

It seems a modest number of layoffs are on the cards, too. "There certainly are redundant positions," said the NAI spokesperson. "For example McAfee.com was a publicly traded company, and now it is not." McAfee.com CEO Srivats Sampath has already said he will not return to NAI after the integration process is complete.

The merger makes sense for the sales teams of the two companies, which have faced complications due to the virtually identical branding. In addition, both companies' target markets have been converging at the edges, which caused problems with cross-selling agreements between them.

NAI first announced its intention to make McAfee.com wholly owned in March. It offered 0.675 shares for every McAfee.com share, a bid that was thrown out by a special committee of McAfee.com's directors as "financially inadequate". The company came back in April with a 0.78 shares offer, which was more to the special committee's liking.

However, shortly afterward the Securities and Exchange Commission slapped NAI with an investigation into the quality of its revenue, causing its share price to decline, and NAI withdrew the bid until July, after it had restated its earnings. However, in the meantime, McAfee.com had made a series of big channel wins with the likes of America Online Inc and Microsoft Corp, making it reluctant to accept such a low offer.

NAI increased its bid to 0.90 of a share, but that was also rejected by the special committee. Investors were reluctant to accept an offer without a cash component, as NAI's dealings with the SEC were still incomplete and its share price could have fluctuated depending on the outcome. The final offer was 81% higher than the March offer.

© ComputerWire

Reducing the cost and complexity of web vulnerability management

More from The Register

next story
Spies would need SUPER POWERS to tap undersea cables
Why mess with armoured 10kV cables when land-based, and legal, snoop tools are easier?
Early result from Scots indyref vote? NAW, Jimmy - it's a SCAM
Anyone claiming to know before tomorrow is telling porkies
Apple Pay is a tidy payday for Apple with 0.15% cut, sources say
Cupertino slurps 15 cents from every $100 purchase
Israeli spies rebel over mass-snooping on innocent Palestinians
'Disciplinary treatment will be sharp and clear' vow spy-chiefs
YouTube, Amazon and Yahoo! caught in malvertising mess
Cisco says 'Kyle and Stan' attack is spreading through compromised ad networks
Hackers pop Brazil newspaper to root home routers
Step One: try default passwords. Step Two: Repeat Step One until success
China hacked US Army transport orgs TWENTY TIMES in ONE YEAR
FBI et al knew of nine hacks - but didn't tell TRANSCOM
Microsoft to patch ASP.NET mess even if you don't
We know what's good for you, because we made the mess says Redmond
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Security and trust: The backbone of doing business over the internet
Explores the current state of website security and the contributions Symantec is making to help organizations protect critical data and build trust with customers.