Check Point in the zone to chase rivals

Zone Labs deal could help security vendor gain market share against Symantec

Security specialist Check Point Software has agreed to acquire Zone Labs for $113m (£62m), in a move analysts believe will help the firm gain market share against Symantec in the SME space.

Check Point has claimed Zone Labs' software will particularly bolster its perimeter, internal and web security software portfolio.

Mike Thompson, principal research analyst at Butler Group, said: "Symantec already has a lead in the consumer space with Norton AntiVirus, but if Zone Labs has 25 million customers worldwide this will help Check Point gain market share rapidly."

Gil Schwed, chief executive of Check Point, said: "About half of Zone Labs' business comes from the enterprise market, so the acquisition will extend our market presence. Over the past year we have had a tremendous amount of interest in web-based security from our customers."

Zone Labs claimed its Integrity enterprise software, IMsecure instant messaging, security software and ZoneAlarm Pro personal firewall protect more than 25 million internet users and 1,100 enterprise customers from the security threats posed by hackers, data theft and malicious code.

Butler Group said the deal will allow Check Point to target new markets without having to adapt its existing software. "Check Point's pricing is geared towards enterprise-class software and it would be hard to scale it down to SMEs.

"Buying Zone Labs provides it with the technology and pricing models to target this market," Thompson said.

Check Point will acquire 200 Zone Labs employees if the deal, subject to shareholder and regulatory approval, is completed as expected in early 2004.