Secure Computing agreed to pay US$295 million for rival Cyberguard but the implications for the companies’ Australian operations and channel would not be known until the deal closes in November.
Under the deal, Secure Computing would issue half a share of its own common stock and US$2.73 in cash for each outstanding Cyberguard share of common stock.
The acquisition would strengthen Secure Computing’s presence in unified threat and secure content management which the company said were two of the security industry’s fastest growing markets.
Eric Krieger, Australian country manager for Secure Computing, said it was a good deal for both companies as their technology is quite similar. Both companies have three staff each in Australia.
“I can’t [yet] say what it means for the channel,” Krieger said. The acquisition meant, however, that the combined companies would be a major force in this region, he said.
Secure Computing sells a range of network security products including Sidewinder and Gauntlet firewalls, authentication solution Safeword PremierAccess and SmartFilter web access and URL blocking software.
Its products are distributed through Dovetail.
Cyberguard markets a range security products including the Global Command Centre and Content Security Management software down to a range of firewall/VPN appliances introduced when it acquired SnapGear in 2003.
The company distributes its wares in Australia through Blue Sky Industries which handles the high-end Layer 7 firewalls and distributors MPA Systems, Dovetail and TechPlus which handle the SnapGear security appliances.
Derek Morwood, regional sales manager at Cyberguard, said both companies would compete strongly against the likes of other players such as Check Point, Netscreen and Cisco.
Max Fredericks, general manager at Secure and Cyberguard distributor Dovetail, said the acquisition was part of the vendor rationalisation in the market and was positive for the distributor. “It’s going to make things simpler for us,” he said.
Dovetail was doing around $3 million in Secure and Cyberguard business combined which represented around 35 percent of the company’s total sales here. There had been a sales “boom” in the whole range of Secure boxes last financial year, ending June, he said.