McAfee Agrees To Acquire Secure Computing

McAfee has 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 position in security risk management (SRM).

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Secure Computing delivers a set of solutions that help customers protect their critical Web, e-mail and network assets. With the pending addition of Secure Computing’s products and services, McAfee expects to be able to deliver a complete network security portfolio (covering intrusion prevention, firewall, Web security, e-mail security and data protection, network access control), from small and mid to large organisations.

“The announcement of this pending acquisition is a natural extension of McAfee’s security-only focus,” said Dave DeWalt, chief executive officer and president of McAfee. “We expect the pending combination of McAfee and Secure Computing will create an annual projected combined revenue of just under $500 million in the network security segment of our SRM portfolio. We believe that this pending acquisition will allow us to immediately establish a highly competitive position in the network security space.”

“I believe the combination of the two companies will allow us to reap the benefits of a worldwide dedicated sales team three times our size, best-in-class security research, greater partner distribution and enhanced cross-selling opportunities,” said Dan Ryan, president and chief executive officer, Secure Computing.