McAfee Buys Solidcore For $33M
The security software company will buy the Cupertino, California whitelisting company in cash, with potential earn-out of up to $14 million.
May 15, 2009
Santa Clara, California-based computer security software maker McAfee, Inc. will acquire Solidcore Systems, Inc. for about $33 million in cash and an earn-out of up to $14 million.
Solidcore develops systems that are comparable to email whitelisting to only permit approved software and applications to run on companies’ IT infrastructure and employee’s mobile phones.
The transaction will simplify McAfee’s efforts of detecting and repairing damage from viruses, by blocking unauthorized applications software and applications. McAfee, with its significant focus on blacklisting viruses and malevolent sources, has been hurt by an industry shift towards whitelisting. The acquisition seems intended to resolve McAfee’s technological gap.
McAfee said the deal will allow it to expand into new areas such as security for automated teller machines, point of sale systems, multifunction printers, and mobile phones. The transaction, which is expected to close in Q2 09, will result in Solidcore being incorporated into the McAfee’s risk and compliance unit.
McAfee chief executive and president Dave DeWalt said he believes the deal will allow McAfee to “secure new platforms and strengthen its hold as the leader in the $6 billion endpoint security market.”
Solidcore, based in Cupertino, California, used Jefferies & Company as its financial advisor for the transaction. As of mid-morning Friday, McAfee shares traded at $38.63 per share, from the company’s open on Friday morning of $37.90.
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