Network Associates buys Dr Solomon's

Network Associates is to acquire rival antivirus software vendor Dr. Solomon's Group PLC, based in the UK, for more than $US640 million.

The stock swap transaction will give Dr. Solomon's shareholders 0.27625 shares of Network Associates' common stock for each Dr. Solomon's ordinary share. The deal is expected to close August 30. It is subject to approval from federal regulators and Dr. Solomon shareholders.

Network Associates anticipates taking a one-time charge in the third quarter of this year related to expenses and other charges in the acquisition.

Combining the rival antivirus vendors has a "huge, huge potential payoff," said Bill Larson, Network Associates chief executive officer (CEO). Network Associates formed last October with the merger of McAfee Associates and Network General.

"Network Associates is committed to being a truly European company," Larson said, adding that the merger will put the firm on course to "becoming a truly multinational company".

Because of UK law, Larson declined to offer specifics about the likely market share of the merged company.

The merged company eventually will have software on 60 million desktop computers, Larson predicted. The antivirus market is different from other software markets because it creates its own renewal stream with users upgrading every few years. Even when the market is more saturated, the merged company should see growth of at least 16 per cent to 20 per cent, which is the growth rate of PCs, he said.

"This is a deal we've been trying to do for many years because we thought it made sense to us," Larson said.

Soon after the acquisition is complete, Dr. Solomon's Anti-Virus Toolkit will be available with Network Associates' enterprise security suites, the Total Virus Defense Suite and Net Tools Secure. The bundled security software package offered by the company represents the future for the market, Larson said.

"We won't be talking in a year from now about the antivirus market or the encryption market or the firewall markets," he said, adding that integrated security software packages increasingly will be offered.

Geoff Leary, Dr. Solomon's CEO, had little to say at a combined press and analyst conference, except that he believes the merger opens opportunities for his employees, shareholders and partners.

"The time is right," he said, "for what we believe is a change in direction, a new era."

Join the PC World newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Matthew Stivala

HP OfficeJet 250 Mobile Printer

The HP OfficeJet 250 Mobile Printer is a great device that fits perfectly into my fast paced and mobile lifestyle. My first impression of the printer itself was how incredibly compact and sleek the device was.

Armand Abogado

HP OfficeJet 250 Mobile Printer

Wireless printing from my iPhone was also a handy feature, the whole experience was quick and seamless with no setup requirements - accessed through the default iOS printing menu options.

Azadeh Williams

HP OfficeJet Pro 8730

A smarter way to print for busy small business owners, combining speedy printing with scanning and copying, making it easier to produce high quality documents and images at a touch of a button.

Andrew Grant

HP OfficeJet Pro 8730

I've had a multifunction printer in the office going on 10 years now. It was a neat bit of kit back in the day -- print, copy, scan, fax -- when printing over WiFi felt a bit like magic. It’s seen better days though and an upgrade’s well overdue. This HP OfficeJet Pro 8730 looks like it ticks all the same boxes: print, copy, scan, and fax. (Really? Does anyone fax anything any more? I guess it's good to know the facility’s there, just in case.) Printing over WiFi is more-or- less standard these days.

Ed Dawson

HP OfficeJet Pro 8730

As a freelance writer who is always on the go, I like my technology to be both efficient and effective so I can do my job well. The HP OfficeJet Pro 8730 Inkjet Printer ticks all the boxes in terms of form factor, performance and user interface.

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?