CyberGuard Completes Snapgear Acquisition
Ft. Lauderdale, Fla. (November 28, 2003) CyberGuard Corporation (NASDAQ: CGFW), the technology leader in network security, today announced that it has completed its acquisition of privately held SnapGear , a leading developer of embedded Linux security and edge firewall/VPN (virtual private network) security appliances.
The transaction, originally announced November 13, 2003, amounts to approximately $16 million of which $1.6 million is in cash and the remaining $14.4 million is in stock. There is additional earnout potential of $3.2 million in stock should SnapGear revenues reach certain thresholds within the first 12 months following the closing. CyberGuard management anticipates that the transaction will be accretive to earnings per share.
SnapGear brings new technology, new expertise, new product offerings and new channel distribution partners to CyberGuard, said Pat Clawson, president of CyberGuard. The move provides an entrance to a fast growing segment of the market and creates a whole new playing field for us. We will now be able to compete in the full firewall/VPN market with the combined product line.
Clawson added, Government agencies, large enterprises and institutions around the world choose CyberGuard to protect the core of their enterprise. As those organizations become more complex, adding remote offices, and as more of their workforce becomes mobile, they need security devices that protect the edge of the enterprise as well. This is precisely what SnapGear brings to CyberGuard the ability to provide a total CyberGuard security solution to an enterprise, from core to edge.
More information about company integration plans and go-to-market strategies is available on the company s Web site at http://www.cyberguard.com/aboutus/snapgear_faq.cfm.
About CyberGuard Corporation
CyberGuard Corporation, the technology leader in network security, provides enterprise and electronic commerce security solutions to Global 2000 companies and governments worldwide. CyberGuard’s award winning, industrial-strength firewall/VPN products and services protect the integrity of data and applications from unauthorized access. CyberGuard’s appliances, which include SL, KS, FS and LX models, hold Common Criteria Evaluation Assurance Level 4+ (EAL4+) certification, the most prestigious and rigorous IT security evaluation available. The company has world headquarters in Ft. Lauderdale, Florida, and branch offices worldwide. More information on CyberGuard Corporation can be found at http://www.cyberguard.com.
This press release contains forward-looking statements that involve certain risks, uncertainties and factors, including without limitation, those described in the Company s filings with the Securities and Exchange Commission, that may cause the Company s future actual results to materially differ from the Company s current expectations. The Company assumes no obligation to update any forward-looking statements.
CyberGuard and SnapGear are registered trademarks of CyberGuard Corporation. All other trademarks are property of their respective owners.