By Lisa Kerner
Charlotte, N.C., Sept. 22 - McAfee, Inc. agreed to acquire Secure Computing Corp. for $5.75 per share, or approximately $413 million in cash.
Secure Computing's outstanding shares of preferred stock will also be redeemed for cash for an additional $84 million.
Total value of the proposed transaction, net of cash held by Secure Computing, is $465 million, according to a McAfee news release.
McAfee and Secure Computing expect to close the merger in the latter part of the fourth quarter, pending regulatory and shareholder approvals.
A termination fee of $16.135 million is included in the agreement, it was reported in a form 8-K filed with the Securities and Exchange Commission.
Secure Computing's technologies will be incorporated under McAfee's network security product business unit and will be lead by Secure Computing president and chief executive officer Dan Ryan.
"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," McAfee CEO and president Dave DeWalt said in the release.
"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," Ryan added.
McAfee is a security technology company located in Santa Clara, Calif.
Secure Computing is a San Jose, Calif., provider of enterprise gateway security solutions.
| Acquirer: | McAfee, Inc.
|
| Target: | Secure Computing Corp.
|
| Announcement date: | Sept. 22
|
| Transaction total: | $465 million
|
| Price per share: | $5.75
|
| Expected closing: | Fourth quarter of 2008
|
| Termination fee: | $16.135 million
|
| Stock price for target: | Nasdaq: SCUR: $4.26 on Sept. 19
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
