McAfee Is Acquiring Stonesoft For $389 Million In Cash

Posted May 6, 2013

McAfee, a security solutions company owned by Intel, is acquiring Stonesoft Oyj for $389 million in cash.  Stonesoft is known for developing firewall protection products.  The acquisition will enable McAfee to expand their product line with a focus on next-generation firewalls, evasion prevention systems, and SSL VPN solutions.

McAfee offered to buy out Stonesoft for ?4.50 (US$5.90) in cash per share of the company.  This is a 142% premium compared to the volume-weighted average trading price of Stonesoft’s stock price on NASDAQ OMX Helsinki over the past 12 months.  It is also a 106% premium above the average trading price in the last 3 months and a 128% premium on the closing price this past Friday.

?With the pending addition of Stonesoft?s products and services, McAfee is making a significant investment in next-generation firewall technology. These solutions anticipate emerging customer needs in a continually evolving threat landscape,? stated McAfee president Michael DeCesare. ?Stonesoft is a leading innovator in this important market segment. We plan to integrate Stonesoft?s offerings with other McAfee products to realize the power of McAfee?s Security Connected strategy. Stonesoft products will benefit from the collective expertise of more than 7,200 McAfee employees. Leveraging McAfee?s cloud-based Global Threat Intelligence service will provide our combined customers with unparalleled security.?

Stonesoft has around 6,500 customers.  The company reported revenues of about 9.2 million euros ($12 million) for Q1 2013.  This is up 12% over the last year.  When the two companies combine, they will have over 2,200 employees.