Feeds

Websense buys Surf Control

Larded up with debt

  • alert
  • submit to reddit

Using blade systems to cut costs and sharpen efficiencies

Websense is bulking up to take on the big IT security vendors by buying Surf Control, the British censorware developer, for £201m ($400m) cash.

It is also bulking up the debt side of its balance sheet, as it is borrowing money to help pay for Surf Control. Post-acquisition Websense expects to have $180m-$200m in debt and cash and marketable securities of $50m. The company aims to reduce debt "aggressively through internally generated cash flows".

Websense thinks that it can generate incremental pro forma cash flow from operations of $15m or so in the next 12 months, rising to $30m in 2009 and $50m in 2010.

The company also reckons it can generate annual "cost synergies" of more than $60m from the takeover, although it doesn't say how, beyond improving Surf Control's operating margins.

At first the acquisition will be slightly dilutive to earnings, but it should enhance earnings per share by 20 per cent within 12 months. And of course the company will have to retain enough Surf Control's customers to make its calculations work out.

The deal is subject to the usual regulatory hurdles and shareholder approval. ®

Boost IT visibility and business value

More from The Register

next story
Secure microkernel that uses maths to be 'bug free' goes open source
Hacker-repelling, drone-protecting code will soon be yours to tweak as you see fit
How long is too long to wait for a security fix?
Synology finally patches OpenSSL bugs in Trevor's NAS
Roll out the welcome mat to hackers and crackers
Security chap pens guide to bug bounty programs that won't fail like Yahoo!'s
HIDDEN packet sniffer spy tech in MILLIONS of iPhones, iPads – expert
Don't panic though – Apple's backdoor is not wide open to all, guru tells us
Researcher sat on critical IE bugs for THREE YEARS
VUPEN waited for Pwn2Own cash while IE's sandbox leaked
Four fake Google haxbots hit YOUR WEBSITE every day
Goog the perfect ruse to slip into SEO orfice
Putin: Crack Tor for me and I'll make you a MILLIONAIRE
Russian Interior Ministry offers big pile o' roubles for busting pro-privacy browser
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Securing Web Applications Made Simple and Scalable
Learn how automated security testing can provide a simple and scalable way to protect your web applications.