Network Associates, an antivirus and security software company, will pay $9.50 per share in a tender offer for all outstanding shares of common stock in PC maintenance software maker CyberMedia within the next five business days. The transaction has already been approved by both companies. CyberMedia, which markets products such as First Aid and UnInstaller, will become part of Network Associates' McAfee Software division under terms of the agreement.
Network Associates executives said the acquisition will bring strong "brand-name recognition" to their McAfee division--which competes with diagnostic software maker Symantec--as electronic commerce begins take off.
"Now we can provide a complete toolbox of applications that allow the desktop user to protect their PC," said Pete Stewart, vice president and general manager for the McAfee division. Stewart added there is very little product overlap between CyberMedia's software titles and Network Associates'.
Stock in Network Associates was down .8125 to 49.125 in midday trading. Shares have traded as high as 56.875 and as low as 27.4167 in the past 52 weeks.
CyberMedia stock, meanwhile, was up more than 21 percent on the news at 9.1562. CyberMedia shares have traded as high as 33.125 and as low as 3.75 during the past year.