NA makes all-cash bid for CyberMedia

Software Spending spree continues with fifth takeover this year.

Network Associates' (NA) acquisition spree continued last week with its $130 million all-cash offer for troubled software and services company CyberMedia.

The takeover coincided with the launch of the McAfee software operation, which NA bought last year to strengthen its antivirus software package.

It will target consumer and corporate desktop users through retail and e-commerce channels.

Bill Larson, NA chief executive, said the acquisition was 'tactical rather than strategic'.

After the CyberMedia acquisition is completed, the division will be integrated into the McAfee business unit in what NA described as a tactical move to broaden its presence in the retail space.

McAfee product sales account for less than 10 per cent of NA's total revenues.

Didier Guibal, NA vice president for EMEA, said CyberMedia's flagship PC products, First Aid and Uninstaller, will also be integrated into its Total Service Desk Suite and pushed through value-added channels to enterprise level corporates.

'In strategic terms, we are looking to broaden the distribution channel for self-healing products because we believe there is a space for them among enterprise level customers,' he added.

The takeover will be NA's fifth since February. The $130 million price tag represents a premium of about 25 per cent on CyberMedia's market value, which has halved over the past 12 months.

ACQUISITION TRAIL

Network Associates' acquisitions during 1998 are:

February Trusted Information Systems - Firewall specialists, $300 million stock swap

March Magic Solutions - Helpdesk software, $110 million cash purchase

May Secure Networks - Secure scanner technology vendor, $25 million

June Dr Solomon's - Antivirus software vendor, $642 million

August CyberMedia - Desktop utility software, $130 million.