The economy is taking a break -- so to speak -- but hackers are not. That makes Web security companies a hot commodity, acquisitions in the sector are on record pace compared to last year.
The latest: McAfee Inc. (NYSE:MFE)
acquired Solidcore Systems Inc., an IT infrastructure protection firm backed by Matrix Partners, Menlo Ventures, Sevin Rosen Funds and Jafco Ventures. McAfee is paying about $33 million for Cupertino, Calif.'s Solidcore, which backs up everything from point-of-service devices to those
lucrative data centers tech giants are vying over.
At the close of the deal, the Solidcore team will be incorporated into McAfee's risk and compliance business unit, headed by senior vice president and general manager George Kurtz. McAfee could also shell out another $14 million if certain performance targets are met.
In April, security software giant Symantec Corp. (NASDAQ:SYMC)
acquired
Mi5 Networks, a security appliance startup that recently raised $3.5
million. Symantec also announced it would offer new protection suites
for small-business and enterprise customers, while promising to do a better job of integrating its acquisitions.
Other recent tech security acquisitions include Scottsdale, Ariz.-based
security software maker Lumension Security buying Texas-based
Securityworks to replace its own compliance and risk assessment
product; and Explorations Group Inc. buying ME2 Security LLC, a
Pennsylvania software development company.
A USA Today article quoted a security acquisitions managing director at Imperial Capital saying prices are attractive because the venture capitalists who invested in promising security startups a few years ago can no longer count on cashing in by going public.
The article noted that QinetiQ, a British company with more than $1
billion in annual revenue, recently said it will spend $40 million to
acquire Cyveillance, a 75-employee firm with technology to locate
malicious programs and stolen data on the Internet.
McAfee CFO Rocky Pimentel told USA Today, "It's certainly a buyers market." -
Baz HiralalMcAfee acquires SolidcoreSymantec acquires Mi5 Networks
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