Secure Computing snaffles Cyberguard
Bride becomes bridegroom
Secure Computing has announced plans to acquire rival security firm CyberGuard in a cash and stock transaction valued at approximately $295m. The deal allows Secure Computing to expand its portfolio to include CyberGuard's all-in-one security appliance and web filtering products as well as expanding its market footprint. The combined firm will include 680 employees, more than 17,000 customers and 1,000 resellers in over 90 countries. Bulking up allow Secure Computing to compete effectively with larger rivals such as Symantec and Cisco.
Secure Computing and CyberGuard both have similar product portfolios, focusing on content security and the firewall/VPN appliance markets. But CyberGuard has a wider array of low-end products and a presence in the fast-moving Unified Threat Management market that Secure covets. Some product consolidation, particular in the enterprise firewall segment occupied by kit from both companies, is likely.
A year ago Cyberguard tried to buy Secure Computing but its overtures were rebuffed. Now Secure Computing has become the suitor in a deal that marks further consolidation in the fast-moving information security marketplace. Secure Computing's plans to expand its presence in the market are being partially financed by a $70m investment from private equity investor Warburg Pincus in the form of convertible preferred stock with warrants. ®