NEWS
The continued consolidation in the security industry, spearheaded by the likes of Symantec, has seen two smaller names in the game become the latest to merge, with Secure Computing snapping up CipherTrust for $273m.
The deal comprises $185m in cash as well as 10 million shares of Secure Computing stock and a $10m consideration against future performance.
To date CipherTrust is probably best known in the industry for its litigation rather than its technology, having fought rivals CyberTrust and IronPort over claims of trademark infringement. However, the company also offers a messaging security solution.
Secure Computing CEO John McNulty said the move allows his company to continue to make strides in the enterprise gateway security market.
McNulty expects CipherTrust to contribute around $80m in revenue next year.
The deal is expected to close in September.
Comments
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1. Richard Stiennon
The security industry is not consolidating. It is boiling with acquisitions and new funding events. The steel industry is consolidating. The telecom equipment space is consolidating.
If Symantec buys McAFee or Trend *that* is consolidation. Secure buying Ciphertrust is an act of desperation, not consolidation.
2. David Stanley
“This deal represents a great opportunity for CipherTrust customers and partners alike, with the integration of our best of breed technology and Secure Computing's portfolio. The bringing together of two leading gateway security companies offers a comprehensive, integrated and unified portfolio of solutions to global businesses. We want to assure our customers, partners, and prospective customers that business continues as normal and we are looking forward to working with Secure Computing to help redefine the security landscape via reputation-based security with global intelligence."