News
McAfee, Inc. Agrees to Acquire Secure Computing for $465 million
September 2008 by Marc Jacob
McAfee, Inc. announced the execution of a definitive merger agreement to acquire Secure Computing Corporation for $5.75 per common share in cash, without interest, representing an equity value for Secure Computing’s common stock of approximately $413 million in the aggregate. In addition, Secure Computing’s outstanding shares of preferred stock will also be redeemed for cash as part of the proposed transaction, which would represent approximately, calculated as of today’s date, an additional $84 million. In total, net of cash held by Secure, the proposed transaction would be valued at approximately $465 million.
Secure Computing is a provider of network security with a product portfolio that spans businesses of all sizes. Through the pending acquisition of Secure Computing, McAfee expects to take another step toward its goal of strengthening its leadership position in security risk management (SRM).
Secure Computing delivers a comprehensive set of solutions that help customers protect their critical Web, email and network assets. With the pending addition of Secure Computing’s products and services, McAfee expects to be able to deliver the industry’s most complete network security portfolio (covering intrusion prevention, firewall, Web security, email security and data protection, network access control), from small and mid to the world’s largest organizations.
The rationale for the proposed acquisition is as follows:
* With Secure Computing, McAfee expects to become one of the largest network security players, delivering the industry’s most complete network security solution to businesses of all sizes, extending the success of its total protection strategy through best of breed technology suites
* Secure Computing TrustedSource technology will extend McAfee’s "in-the-cloud" security as a service offering
* With Secure Computing, McAfee expects to be able to deliver the complete content and data lifecycle management at the network, spanning detection, filtering, encryption, blocking, archiving, reporting and compliance
* Secure Computing has more than 22,000 customers in 106 countries that will be able to rely upon McAfee as a single source for complete security portfolio—spanning endpoint, network, data and risk and compliance
The proposed acquisition is subject to regulatory approvals and Secure Computing stockholder approval, and is expected to close in the latter part of the fourth quarter of 2008. McAfee anticipates that following the closing, Secure Computing’s technologies will be incorporated under McAfee’s Network Security product business unit, headed by Dan Ryan.
