Secure Computing buys CipherTrust; SCUR drops 36 percent

By Jeff Ubois
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Secure Computing, a San Jose, Calif.-based network security company best known for its firewalls, appliances, and Sidewinder product line, will pay $185 million in cash, 10 million shares of Secure Computing stock, and a $10 million note contingent on performance for CipherTrust, an anti-spam appliance vendor. Not a great exit for investors in that one — especially given today’s 36 percent drop in Secure Computing’s stock due to a miss of expected earnings.

But strategically, the deal probably makes sense. The anti-spam appliance market is crowded, and going public probably isn’t an option. Proofpoint, Mirapoint, Barracuda, and IronPort have all got to be thinking about their own futures this morning.

Published July 12, 2006