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SANTA CLARA--- McAfee, Inc. Agrees to Acquire Reconnex and Expects to Redefine the Data Protection Market |
| 7/31/2008 @ 3:29 PM
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McAfee, Inc. (NYSE:MFE) today announced a definitive agreement to acquire privately owned Reconnex for $46 million in cash. Reconnex is a leading data loss prevention (DLP) company with unique technology that learns and adapts to automate the ongoing protection of data.
"Data protection is the number one concern of chief information security officer's, but today's DLP solutions take too long to deploy and obtain results," said Dave DeWalt, chief executive officer and president of McAfee. "With the pending acquisition of Reconnex, McAfee expects to redefine the entire data protection market by bringing together a leader in the hottest segment with our comprehensive portfolio of data protection technologies. We expect that this will enable us to leapfrog other data protection vendors and to reinforce our position as the largest dedicated security company."
Reconnex's technology helps an organization protect all the information assets on its network without requiring upfront knowledge of what needs to be protected, regardless of how that information is stored, secured or communicated. Through the pending acquisition of Reconnex, McAfee expects to further enhance its leadership position in proactive security and risk management solutions.
"The growing number of high-profile incidents in which customer records, confidential information and intellectual property were leaked (or lost/stolen) has created an explosive demand for solutions that protect against the deliberate or inadvertent release of sensitive information," said Brian Burke, security research analyst at IDC. "This acquisition creates a great opportunity for McAfee to fulfill a critical need in this space. IDC forecasts worldwide revenue for the information protection and control (IPC) market to grow from $765 million in 2006 to $3.2 billion in 2011, representing a 33% compound annual growth rate. Reconnex's gateway-based technology perfectly compliments McAfee's existing host based data protection solution and will position McAfee securely in this space."
Reconnex's products align with McAfee's vision to provide a complete data protection and compliance solution to its customers, meeting the significant demand for adaptive data protection. With more than 60 million nodes managed by McAfee ePolicy Orchestrator (ePO ), McAfee can bring automated, centrally managed and adaptive protection to its existing customer base and further help users enhance the value of their current investments.
"As a joint customer of both McAfee and Reconnex, we believe the combination of their technologies will significantly benefit our network security operations," said Joshua Davis, director of Information Security and Compliance at Qualcomm Incorporated. "Managing our system network protection under one management console will provide us a more comprehensive view into our security infrastructure."
"We expect this acquisition to help McAfee solve the bigger, tougher data protection problems inhibiting current DLP deployments and will result in tremendous opportunities for our collective customers and partners," said John Peters, chief executive officer of Reconnex. "Our technology helps businesses answer the two fundamental questions of what to protect and from whom. McAfee will be better equipped to help organizations address the complexity and time involved in the deployment and management of data protection."
Reconnex has solved the current problems with DLP through innovative learning technology that indexes, classifies and understands the context of all content within or as it leaves an organization. Reconnex's "knowledge mining" capability helps businesses tackle the fear of the unknown. Businesses don't need to know what they should protect, because the technology can help them find, analyze and classify their data.
The acquisition is expected to close in the third quarter of 2008. McAfee anticipates that following the closing, Reconnex's technologies will be incorporated under McAfee's Data Protection product business unit, headed by Gerhard Watzinger.
For additional information, please reference www.mcafee.com/enddataanxiety.
Forward-Looking Statements:
This release contains forward-looking statements, which include those regarding McAfee's future plans for the Reconnex business, the expected closing date of the acquisition, the expectations as to the growth opportunities from the acquisition of the Reconnex business and McAfee's expected plans for the integration of Reconnex products. Factors that could cause McAfee's actual realization of expected financial and other investments of the acquisition to be materially different from those anticipated include among others, the inability to integrate successfully Reconnex within McAfee or to realize synergies from such integration; costs related to the acquisition of Reconnex inability to obtain necessary regulatory approval or to obtain them on acceptable terms; the economic environment of the industries in which McAfee and Reconnex operate, as well as facts relating to Reconnex that may impact the timing or amount of synergies they can be realized and that are unknown to McAfee. In addition, actual results are subject to other risks and uncertainties that relate more broadly to McAfee's overall business, including those more fully described in McAfee's filings with the SEC including its annual report on Form 10-K for the year ended December 31, 2005, and its quarterly report filed on Form 10-Q for the first quarter of 2008.
About McAfee, Inc.
McAfee, Inc. is the leading dedicated security technology company. Headquartered in Santa Clara, California, McAfee delivers proactive and proven solutions and services that secure systems and networks around the world. With its unmatched security expertise and commitment to innovation, McAfee empowers home users, businesses, the public sector, and service providers with the ability to block attacks, prevent disruptions and continuously track and improve their security. Http://www.mcafee.com/.
About Reconnex
Reconnex is the leader in data loss prevention appliances, which are designed for any organization -- including enterprises, government agencies, or educational institutions -- that want to protect its brand, maintain compliance, or secure sensitive information. Reconnex delivers a patented learning application that allows organizations to quickly identify their sensitive data, their business process, and gain better insight into risk. A privately held company based in Silicon Valley, Calif., Reconnex protects information for over 1.5 million users today. For more information about Reconnex, please visit www.reconnex.net/ or call 866-940-4590. |
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