McAfee to acquire Secure Computing for $465M

Deal expected to be completed by year-end.

McAfee on Monday announced an agreement to acquire Secure Computing in a transaction valued at US$465 million that is expected to be completed by year-end.

The deal is being touted as combining Secure Computing's strengths in firewall, Web and e-mail gateway filtering with McAfee's intrusion prevention, desktop encryption, data-leak prevention, antimalware, regulatory compliance and centralized management.

One presumed benefit of the deal is that buying behavior in the corporate security arena favors vendors that can offer a broad and complete line of security products, says McAfee CEO Dave DeWalt.

"Without question the products have to be good," DeWalt says. "But it's also about the broadest suite of protections at the lowest costs," and vendors that can bring a comprehensive set of products to the table during a customer's review period have advantages over those more limited in product scope, he says.

John Pescatore, an analyst at Gartner, says the merging of these security firms does provide a benefit of scale in product offerings.

"It gives McAfee and Secure Computing a way to compete with Cisco and Juniper," Pescatore says. But he also notes there is overlap in the product line with both vendors supplying Web gateways, which will have to be addressed.

Secure Computing widely licenses its SmartFilter gateway filter to others in industry, and McAfee licenses it in its Web gateway. DeWalt says the McAfee gateway is more targeted toward small-to-midsize businesses than Secure Computing's enterprise-scale Secure Web. The plans call for McAfee to continue Secure Computing's practice of widely licensing SmartFilter to others in industry.

Dan Ryan, CEO at Secure Computing, is expected to join McAfee as executive vice president and general manager to head up McAfee's network-security business.

"We see this as the best plan for our company and its shareholders," Ryan says, adding Secure Computing plans to complete the acquisition already in progress of Securify, a maker of an identity-based application firewall system.

While the two firms won't discuss specific product integration plans, it's expected that Secure Computing products will eventually be integrated into McAfee's umbrella management console, ePolicy Orchestrator, after the merger is completed.

McAfee has 4,558 employees globally and Secure Computing has about 900 employees. DeWalt says the vast majority of Secure Computing employees are expected to join McAfee.

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags mcafee

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Ellen Messmer

Network World
Show Comments

Cool Tech

Breitling Superocean Heritage Chronographe 44

Learn more >

SanDisk MicroSDXC™ for Nintendo® Switch™

Learn more >

Toys for Boys

Family Friendly

Panasonic 4K UHD Blu-Ray Player and Full HD Recorder with Netflix - UBT1GL-K

Learn more >

Stocking Stuffer

Razer DeathAdder Expert Ergonomic Gaming Mouse

Learn more >

Christmas Gift Guide

Click for more ›

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?