Sophos to offer $340 million takeover bid for German rival
The U.S. provider of Internet security software says it will offer a 92 percent premium for the shares of Utimaco Safeware AG.
Sophos, a U.S. provider of Internet security software, said Monday it has offered $340 million to buy Utimaco Safeware AG, a German software specialist in the field of data loss and encryption.
The Boston-based Sophos said Monday that it plans to launch a takeover bid for the company, offering $23.11 for all outstanding Utimaco shares, or a 92 percent premium on the company's latest closing price. To that end, the company also said it entered into an agreement with Investcorp Technology Partners, the largest shareholder of Utimaco, to acquire its 24.99 percent stake in Utimaco for cash and stock.
Steve Munford, Sophos CEO, characterized the deal as a "friendly takeover."
"Utimaco will be the cornerstone of our data protection strategy," Munford said.
Utimaco is listed on the Frankfurt Stock Exchange. Sophos expects the deal to close in October, and the companies to be fully integrated by the first quarter of 2009. Utimaco will operate as a division of Sophos.
CNET News' Dawn Kawamoto contributed to this report.