Secure Computing to acquire CyberGuard

Security vendor buys rival and claims it will become a $1bn company by 2010

Secure Computing announced last week that it has signed a definitive agreement to acquire all the outstanding common stock of CyberGuard in a deal estimated to be worth about $295m.

The deal will create a combined company with over 17,000 customers and 1,000 channel partners in more than 90 countries.

Pat Clawson, chief executive of CyberGuard, said in a statement: “Together we will be able to offer the most advanced and robust security solutions for the Unified Threat Management [UTM], secure content management and strong authentication markets.”

Andrew Philpott, vice-president EMEA at Secure Computing, said: “This will create an excellent opportunity for our channel partners because it will give them the chance to cross sell both sets of products.”

Philpott added that the acquisition, which is still subject to CyberGuard shareholder approval, is scheduled to be completed in November 2005.

“For our channel partners Secure Computing has great experience in managing acquisitions and going forward is going to benefit our partners and our customers,” he said.

“One of the fastest growing sectors in the security market according to IDC is UTM and we are positioned well.”

Chris Durnan, managing director of VAR Peapod said: “This is a really good move, particularly within the UTM marketplace. I have known both companies for a long time and clearly the consolidating market makes it easier for us resellers.”

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