CyberGuard completes game of SnapGear

$16m acquisition of Linux security developer provides entry to SME market

Security vendor CyberGuard has completed its $16m acquisition of SnapGear, the privately held embedded Linux security and firewall/virtual private network developer.

The deal, which CyberGuard hopes will allow it to take on NetScreen and Cisco in the SME appliance space, was announced last month.

The transaction will consist of $14.4m in stock and $1.6m in cash.

"SnapGear brings new technology, expertise, products and channel partners," said CyberGuard president Pat Clawson.

"The move provides an entrance to a fast-growing segment of the market and creates a whole new playing field for us."

Bob Tarzey, service director at Quocirca, said the acquisition means CyberGuard will increase its Linux portfolio, but said there are still bigger firms, such as Nokia, NetScreen and Cisco.

"Linux is an important part of the market, but this acquisition is just part of the general consolidation that is going on in the firewall and networking industry at the moment," Tarzey said.