Q3 2008 Security Transactions

NETGEAR to acquire CP Secure

NETGEAR, Inc., a provider of branded networking products, is acquiring the assets of CP Secure, Inc. Founded in 2002 and with an established engineering center in Nanjing, China, CP Secure is a provider of integrated security solutions that protect organizations from Internet-originated web and email-based malware threats. Its CSG family of products delivers network protection, web filtering and email security in an easy-to-deploy, intuitive and feature-rich platform. CP Secure’s patent-pending stream-based scanning technology enables real-time scanning of high-volume web and email traffic without degrading network performance, achieving up to five times better scanning performance than its competitors. NETGEAR said it plans to release a full line of its ProSecure security appliances for web, email and unified threat management incorporating CP Secure's platform within the next 12 months.

Announcement Date: September 22, 2008
Deal Value: $17.5 million

McAfee to buy Secure Computing

Security software maker McAfee Inc. is acquiring network security company Secure Computing Corp. Secure Computing is a provider of network security with a product portfolio that spans businesses of all sizes. Secure Computing delivers a comprehensive set of solutions that help customers protect their critical web, email and network assets. With the pending addition of Secure Computing's products and services, McAfee expects to be able to deliver the industry's most complete network security portfolio (covering intrusion prevention, firewall, web security, email security and data protection, network access control), from small and mid-sized to the world's largest organizations. Further, Secure Computing TrustedSource technology will extend McAfee's "in- the-cloud" security as a service offering.

Announcement Date: September 22, 2008
Deal Value: $465 Million (Cash)

Trusted Computer Solutions acquires CounterStorm

Trusted Computer Solutions, Inc., a developer of cross-domain solutions for secure access and sharing of classified information and a supplier of Linux-based security applications, acquired CounterStorm, a provider of internal network security and threat analysis technology. CounterStorm’s solution constantly monitors for network anomalies and malicious activities to accurately detect and mitigate known, non-signature based unknown, zero-day and sophisticated targeted attacks. This acquisition enables TCS to provide commercial and government organizations with a three-step approach for addressing advanced network security, insider threat mitigation and threat analysis.

Announcement Date: September 8, 2008
Deal Value: Undisclosed

Secure Computing to acquire Securify

Secure Computing Corporation, a leading enterprise gateway security company, announced it has signed a definitive agreement to acquire Securify, a provider of identity-based monitoring solutions. Securify provides an innovative and easy-to-use solution for monitoring and controlling user access to applications within complex and rapidly changing networks. Its "plug-and-play" appliance offers automatic discovery and policy development in intuitive business terms of users, groups and applications. Secure Computing says the combination of products will facilitate a seamless workflow where out-of-policy behavior can be analyzed, reported and, in combination with Secure Firewall, automatically mitigated. Longer term, combining Securify's technology with Secure Firewall will allow it to deliver a unique, next-generation firewall that enforces business policy by enabling visibility and control over applications and user access, as opposed to the current paradigm of protocols and IP addresses.

Announcement Date: September 4, 2008
Deal Value: $15 Million (Cash plus potential earnout up to another $5 million)

4C Controls to acquire Zahra

4C Controls Inc. is acquiring Zahra Technology LLC and its wholly-owned subsidiary Zahra Security Systems and Electricals LLC. Since Zahra’s inception in 1983, the company has been a leading provider of high technology products, services and solutions for the security and communication industry in Dubai, Abu Dhabi and throughout the United Arab Emirates. 4C Controls intends to utilize Zahra to facilitate growth in international sales and operations. In 2007, Zahra had gross revenues of approximately $11.8 million and expects to close 2008 with revenues of approximately US$25 million. Zahra currently has 105 employees of whom 37 are engineers, 44 are technicians and 24 are office staff.

Announcement Date: September 4, 2008
Deal Value: Undisclosed

ANXeBusiness acquires VPN Division of Positive Networks

ANXeBusiness Corp. has acquired the Virtual Private Network (VPN) division of Positive Networks, Inc., including its flagship product, PositivePRO, and will merge that business in a move designed to strengthen the ANX virtual private network (VPN) product line for customers in multiple vertical markets. Positive Networks is a leading provider of managed VPN and end-point security products and services, which are designed to provide remote office capabilities for end users and IT departments and enable employees to connect to their company's local area network (LAN) and intranet. ANX also strengthens its software and programming capabilities through the Positive Networks VPN development team, which also is part of the acquisition.

Announcement Date: September 2, 2008
Deal Value: Undisclosed

Trustwave acquires ControlPath

Trustwave, provider of on-demand data security and payment card industry compliance management solutions, acquires ControlPath, provider of compliance software platforms for managing and automating enterprise Governance, Risk Management and Compliance of multiple regulatory regimes. The integration of the ControlPath GRC technology into Trustwave's suite of on-demand compliance management solutions will streamline multiple compliance mandates for enterprise customers, reducing their expenses and risk. The combined Compliance Suite manages and automates the entire compliance lifecycle, from risk assessment and work flow, to remediation planning and tracking, and verification control testing for all security compliance frameworks.

Announcement Date: August 27, 2008
Deal Value: Undisclosed

MessageLabs acquires Fortium ICA

MessageLabs, a provider of integrated messaging and web security services to businesses worldwide, has acquired Fortium ICA Limited, a leading provider of image composition analysis technology that enables businesses to enforce acceptable use policies of email. The service prevents unwanted or offensive images from entering or leaving a corporate network and is fully integrated into MessageLabs portfolio of managed services centrally accessed through one client portal and policy engine. The acquisition strengthens MessageLabs’ position as a market leader in Software as a Service (SaaS) solutions for email, web and IM security, data loss prevention and archiving.

Announcement Date: August 26, 2008
Deal Value: $20.8 Million

WidePoint acquires Protexx

WidePoint Corporation, a provider of information technology, identity assurance and mobile telecom expense management services, has acquired Protexx, Inc., an identity management and information protection company. Protexx secures data in motion and remote authentication over any network or wireless environment with its patent-pending, competitively differentiated, encryption technology. Protexx develops and markets encryption software that safely transmits sensitive data and completely protects the identity of both sender and receiver. The company’s 2,048 bit-encryption software is believed to be impenetrable by current hacker technology and is designed for use by mobile professionals and public sector service providers in addition to the health care, financial services, and hospitality sectors. The company’s proprietary software can be integrated with a biometric positive identification component to assure complete security for transmission of data over the Internet. The acquisition of Protexx quickly and significantly expands WidePoint’s core security offerings into the commercial sector and broadens its portfolio of services options to its existing base of current federal clients.

Announcement Date: August 4, 2008
Deal Value: Undisclosed

McAfee to acquire Reconnex

Security software maker McAfee Inc. is acquiring Reconnex, a privately-held data loss prevention company. Reconnex's technology helps an organization protect all the information assets on its network without requiring upfront knowledge of what needs to be protected, regardless of how that information is stored, secured or communicated. The company said Reconnex's product "learns and adapts" to help companies protect sensitive information with less hassle for information technology workers. Data protection is the number one concern of chief information security officers, but today's DLP solutions take too long to deploy and obtain results. With the pending acquisition of Reconnex, McAfee expects to redefine the entire data protection market by bringing together a leader in the hottest segment with its comprehensive portfolio of data protection technologies. Reconnex's gateway-based technology perfectly complements McAfee's existing host-based data protection solution and will position McAfee securely in this space.

Announcement Date: July 31, 2008
Deal Value: $46 Million (Cash)

Audax acquired PowerTech

Audax, together with Help/Systems, Inc., acquired PowerTech from Bluestem Capital, Inc. and SeaPoint Ventures. The PowerTech Group is a provider of security software applications to the System i platform. Products include solutions for network security, security audits, authority brokerage, and compliance monitoring, among others. Audax acquired Help/Systems in September 2007 as a leading software company serving the IBM System i server platform market. The acquisition of PowerTech supplements Help/Systems' product offering in the security software market. Audax will continue to work with management to execute a growth strategy focused on international markets, new product introductions, and strategic add-on acquisitions.

Announcement Date: July 30, 2008
Deal Value: Undisclosed

Aladdin Knowledge Systems acquires Secure Computing SafeWord product line

Aladdin Knowledge Systems, an information security leader specializing in authentication, software DRM and content security, will acquire the Secure SafeWord product line from Secure Computing Corporation, an enterprise gateway security company. The deal will position Aladdin as the leading authentication provider and add a strong market and channel presence to Aladdin's eToken solutions.
 
Announcement Date: July 30, 2008
Deal Value: $65 Million (Cash)

Sophos to launch bid for Utimaco Safeware AG

Sophos Plc, a global provider of endpoint security and control solutions, announced its intent to acquire Utimaco Safeware AG (Germany), a global provider of data security solutions for enterprises. Sophos intends to launch a voluntary public takeover offer in cash for all outstanding Utimaco shares. This intended combination furthers Sophos’s Security and Control strategy – to lead in protecting information and computers from external threats and careless or malicious end-user behavior – at a time when data loss has joined viruses as a key concern for IT professionals. Upon completion, Utimaco will become a new business unit within the Sophos group focused on data security, while retaining its well-established, SafeGuard product branding under the Sophos brand.

Announcement Date: July 28, 2008
Deal Value: $338 Million (Cash)

Motorola to acquire AirDefense

Motorola, Inc. is acquiring privately held AirDefense, a wireless LAN (WLAN) security provider. AirDefense develops Wireless Intrusion Prevention Solutions (WIPS) and premium software applications, which enable corporations to secure their networks against wireless security threats and comply with regulatory and industry standards. AirDefense has been an innovator and a leader in the industry since its inception in 2001, including the introduction of the first 24x7 Monitoring and Wireless Intrusion Detection System, the first use of access points as sensors and a host of add-on modules that address customer specific security problems and RF troubleshooting needs. In addition, AirDefense enables secure multi-vendor environments, which allows organizations to benefit from AirDefense's solutions regardless of their WLAN infrastructure. Based on our trusted and valuable partnership through the years, Motorola is confident that the combination of Motorola's WLAN infrastructure and AirDefense's best-of-breed features will further enhance its network security offerings and better secure customers' networks.

Announcement Date: July 28 2008
Deal Value: Undisclosed

Raytheon acquires Telemus Solutions

Raytheon Company has acquired Telemus Solutions, Inc., a provider of information security, intelligence and technical services to defense, intelligence and other federal customers. Telemus delivers customized solutions in infrastructure protection, engineering, research and analysis that help customers detect, defer, and delay potential security threats. The purchase of Telemus underscores Raytheon's continued focus on the emerging cyber security market. Raytheon says the difficult challenges faced by our nation need to be met with mission-focused talent, experience and agility, and the acquisition will better position it to provide these services.

Announcement Date: July 28, 2008
Deal Value: Undisclosed

NitroSecurity acquires RippleTech

NitroSecurity, Inc., a provider of high performance, unified information security solutions, has acquired RippleTech. The combination of NitroSecurity's Security Information & Event Management (SIEM) and Intrusion Prevention System (IPS) solutions with RippleTech's Database Activity Monitoring and Log Management solutions allows companies to better protect their critical data and infrastructure with one integrated solution. The addition of RippleTech’s products allows NitroSecurity to deliver the industry's highest performance, fully integrated, SIEM and log management solution. NitroSecurity's product suite integrated with RippleTech's log management and database activity monitoring solutions takes network visibility and protection to an entirely new level. The ability to provide deep network visibility and simultaneously monitor database activity and meet compliance requirements is a notable stride in the industry.

Announcement Date: July 15, 2008
Deal Value: Undisclosed

Thales to acquire nCipher

Thales UK Ltd, a unit of Thales SA, is acquiring nCipher PLC (UK), a developer of Internet security products. Founded in 1996 and based in Cambridge, England, nCipher offers software centering around encryption, a growing area as companies seek to secure their data in light of high-profile breaches over the last few years. nCipher's portfolio includes products for handling the keys that unlock encrypted data. How those keys are handled often involves compliance with data protection regulations as well as policy controls for who can access the keys. Thales, which is the second-largest supplier of electronics to the UK's Ministry of Defense, said the deal will bolster its encryption offerings, giving it several hardware security modules, a provisioning product for managing cryptographic keys and products focused on the security of data stored on tape.

Announcement Date: July 11, 2008
Deal Value: $100 Million (Cash)
Seller Revenue: $48.4 Million (2007)