Netgear announces asset acquisition of CP Secure
ConvergenceAsia staff
26/08/2008

Netgear, a worldwide provider of networking products, has announced a definitive agreement to acquire the assets of privately-held CP Secure, an established engineering centre in Nanjing, China. CP Secure’s integrated security solutions protect organisations from Internet-originated web and email-based malware threats.

Under the terms of the agreement, Netgear will pay US$14.0 million in cash for CP Secure’s assets. CP Secure will receive a total additional payout of up to US$3.5 million in cash following closure of the acquisition if it achieves certain specified objectives. The acquisition is expected to close in the fourth quarter.

As SMBs increasingly rely on web 2.0 and email applications to conduct business with customers, partners, and vendors alike, SMBs are increasingly seeking effective and easy-to-administer integrated solutions to safeguard their networks and applications from Internet threats and ensure business continuity, said Patrick Lo, Chairman and CEO of Netgear.

“CP Secure’s offerings complement our current network security offerings, which include the Netgear ProSafe Wired and Wireless VPN Firewalls and Secure-Socket-Layer (SSL) VPN Concentrator. With an expanded security solution lineup that will incorporate CP Secure’s integrated platform, we can provide organisations with robust, comprehensive, zero-hour protection for their network, web access and email traffic. We also believe that the easy-to-deploy, easy-to-administer and real-time scanning performance features of the CP Secure solution will resonate with our target small and medium business customers.”

Under the terms of the transaction, Netgear is acquiring a select team of CP Secure employees, including its Nanjing engineering centre with over 40 engineering professionals, its pending patents, proprietary technologies, customer base, current products, and products in development.

Netgear intends to release a full line of Netgear ProSecure security appliances for web, email and unified threat management incorporating CP Secure’s platform within the next 12 months.

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