NETGEAR Announces Asset Acquisition Of CP Secure

NETGEAR has announced the execution of a definitive agreement to acquire the assets of privately-held CP Secure.

Founded in 2002 and with an established engineering centre in Nanjing, China, CP Secure is a provider of integrated security solutions that protect organisations from Internet-originated Web and e-mail based malware threats. Its CSG family of products delivers network protection, web filtering and e-mail security. CP Secure’s scanning technology enables real-time scanning of high-volume Web and e-mail traffic without degrading network performance.

Under the terms of the agreement, NETGEAR will pay $14.0 million in cash for CP Secure’s assets. CP Secure will receive a total additional payout of up to $3.5 million in cash following closure of the acquisition if it achieves certain specified objectives.

“As SMBs increasingly rely on Web 2.0 and e-mail applications to conduct business with customers, partners, and vendors alike, SMBs are increasingly seeking integrated solutions to safeguard their networks and applications from Internet threats and ensure business continuity,” said Patrick Lo, chairman and CEO of NETGEAR. “CP Secure’s offerings complement our current network security offerings, which include the NETGEAR ProSafe Wired and Wireless VPN firewalls and Secure-Socket-Layer (SSL) VPN concentrator. With an expanded security solution lineup that will incorporate CP Secure’s integrated platform, we can provide organisations with zero-hour protection for their network, Web access and e-mail traffic. We also believe that the real-time scanning performance features of the CP Secure solution will resonate with our target small and medium business customers.”

Shuang Ji, CEO of CP Secure, said, “By leveraging NETGEAR’s brand name and global distribution channel and supply chain relationships, we believe we will be able to offer CP Secure’s enterprise-level security features to SMBs, who are exposed to the same security threats as enterprises, and can and should expect the same degree of network protection.”