The agreement, announced Thursday, is designed to bolster Secure Computing's presence in unified threat management--the market for tightly integrated solutions that cover functions such as anti-spyware, firewall protection and intrusion detection. The company, which sells a mix of hardware and software, is also aiming to strengthen its position in the market for products that secure content that flows through a network.
"By combining the companies, Secure Computing will be the leader in the unified-threat-management market, the fastest-growing segment of the IT security market," John McNulty, chief executive of San Jose, Calif.-based Secure Computing, said in a statement.
The companies noted that the deal will let them integrate their application proxy firewall technologies, as well as their Web-filtering offerings.
Secure Computing will issue 0.5 shares of its common stock and $2.73 in cash for every outstanding share of CyberGuard, which is based near Tampa, Fla. The deal represents a 16 percent premium over CyberGuard's shares. Warburg Pincus, a private equity firm, will also invest $70 million into Secure Computing as part of the deal.
The acquisition is expected to close in the fourth quarter. The combined company will have 680 employees and a presence in 90 countries.
The deal is just the latest marriage in the. Industry giant , and to acquire data security specialist DeCru this summer.