Feeds

Websense buys Surf Control

Larded up with debt

  • alert
  • submit to reddit

Build a business case: developing custom apps

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. ®

Endpoint data privacy in the cloud is easier than you think

More from The Register

next story
14 antivirus apps found to have security problems
Vendors just don't care, says researcher, after finding basic boo-boos in security software
'Things' on the Internet-of-things have 25 vulnerabilities apiece
Leaking sprinklers, overheated thermostats and picked locks all online
iWallet: No BONKING PLEASE, we're Apple
BLE-ding iPhones, not NFC bonkers, will drive trend - marketeers
Multipath TCP speeds up the internet so much that security breaks
Black Hat research says proposed protocol will bork network probes, flummox firewalls
Only '3% of web servers in top corps' fully fixed after Heartbleed snafu
Just slapping a patched OpenSSL on a machine ain't going to cut it, we're told
Microsoft's Euro cloud darkens: US FEDS can dig into foreign servers
They're not emails, they're business records, says court
How long is too long to wait for a security fix?
Synology finally patches OpenSSL bugs in Trevor's NAS
Israel's Iron Dome missile tech stolen by Chinese hackers
Corporate raiders Comment Crew fingered for attacks
prev story

Whitepapers

7 Elements of Radically Simple OS Migration
Avoid the typical headaches of OS migration during your next project by learning about 7 elements of radically simple OS migration.
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.
Solving today's distributed Big Data backup challenges
Enable IT efficiency and allow a firm to access and reuse corporate information for competitive advantage, ultimately changing business outcomes.
A new approach to endpoint data protection
What is the best way to ensure comprehensive visibility, management, and control of information on both company-owned and employee-owned devices?