NWC News Network, Oct. 1 2008, 1130 hrs
Netgear has recently announced the execution of a definitive agreement to acquire the assets of privately-held CP Secure. Under the terms of the agreement, the company will pay $14.0 million in cash for CP Secure’s assets and CP Secure will receive a total additional payout of up to $3.5 million in cash following closure of the acquisition if it achieves certain specified objectives.
Founded in 2002 and with an established engineering center in Nanjing, China, CP Secure is one of the leading providers of integrated security solutions that protect organizations from Internet-originated web and email based malware threats.
“CP Secure’s offerings complement our current network security offerings, which include our ProSafe Wired and Wireless VPN Firewalls and Secure-Socket-Layer (SSL) VPN Concentrator. With an expanded security solution lineup that will incorporate the company’s integrated platform, we can provide organizations with robust, comprehensive, zero-hour protection for their network, web access and email traffic. We also believe that the easy-to-deploy, easy-to-administer and real-time scanning performance features of the company’s solutions will resonate with our target small and medium business customers,” said Patrick Lo, Chairman and CEO, Netgear.
Under the terms of the transaction, Netgear will acquire a select team of CP Secure employees, including its Nanjing engineering center with over 40 engineering professionals, its pending patents, proprietary technologies, customer base, current products, and products in development. The company intends 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.
The acquisition is subject to various standard closing conditions and is expected to close in the fourth quarter. Following completion of the transaction, CP Secure’s Chief Executive Officer, Shuang Ji, will become Netgear’s Vice President of Engineering for security products.
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