Further consolidation in security market

Aug 22, 2005: Secure Computing has bought CyberGuard, in the latest big consolidation move in the security market, to help it improve its capability of protecting data as it flows through the network.

Secure Computing hopes that this acquisition will mean that it will become a leader in the unified threat management market.

John McNutty, the chairman, president and CEO of Secure Computing, said that the acquisition of CyberGuard will bring together two companies with highly complementary strengths and market synergies, and will allow us to accelerate our strong pace of success over the last few years.

"This transaction meets important strategic priorities and better positions Secure Computing in two of the fastest growing markets of the security industry. By combining the companies, Secure Computing will be the leader in the Unified Threat Management market, the fastest growing segment of the IT security market according to IDC.

"It will also accelerate our ability to further penetrate the Secure Content Management market, and clearly positions Secure Computing as the number two player in web filtering with approximately 21.0 million licensed seats. We believe the acquisition will be accretive to Secure Computing's earnings within the second full quarter of operations following the close of the transaction."

This move represents further consolidation in the security market, following the recent acquisition of Veritas by Symantec. In addition, Network Appliance has announced plans to buy data security specialist DeCru soon in the future too.

Pat Clawson, the chairman and CEO of CyberGuard Corporation, is thrilled about the plans to combine with Secure Computing.

"Like Secure Computing, CyberGuard has built an excellent reputation in the market by delivering a suite of integrated information security solutions to Global 2000 enterprises and government organisations worldwide. Together, we will be able to offer customers the most advanced and robust security solutions for the Unified Threat Management, Secure Content Management and Strong Authentication markets."

The new company will aim to incorporate the best features and functions of both application proxy firewall products into a single technology offering and provide customers with the most advanced application proxy/deep inspection technology in the market.

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