Secure Computing snags N2H2
Secure Computing today announced plans to acquire content filtering company N2H2 in an all-stock transaction valued at approximately $19.9 million.
Secure Computing is probably best known for its Sidewinder G2 Firewall and VPN products, but it also has a smaller business selling content filtering technology. Joining forces with N2H2 brings around 2,000 new customers on board and "increases our market share and critical mass in the Internet content filtering marketplace," according to Tim McGurran, president and chief operating officer of Secure Computing.
N2H2, although strong in the education market in particular, lags some way behind companies like Websense and SurfControl in the overall content filtering market.
The N2H2 acquisition will boost Secure's earnings in the first full quarter of combined operations thanks to "cost savings from consolidation and operating efficiencies", Secure Computing predicts.
Last week Secure Computing posted Q2 profits of $1 million on revenues of $18.2 million, compared to losses of $7.08 million on revenues of $16.6 million during the same period last year. This week N2H2 reported reduced losses of $187,000 on revenues Q2 2003 revenues of $3.1 million.
The merger is subject to approval by N2H2's shareholders and is expected to close during the fourth calendar quarter of 2003. ®