In a bid to become a one-stop shop for security products and services, Network Associates is purchasing Trusted Information Systems (TIS), maker of the Gauntlet firewall, for $300 million in stock.
"Network Associates is now the largest security software vendor in the market," said Network Associates' chairman and CEO Bill Larson, in a conference call announcing the deal. He said the deal would "raise the bar" of what it means to be a security software provider.
"Being a point provider of antivirus software is no longer sufficient", he claimed, predicting a consolidation of the industry.
"Customers are looking for a single source for product, service and support," Larson said. "We're the only vendor with representation in encryption, authentication, intrusion detection, firewalls and antivirus. We're the leader or the number two in each of these respective markets."
TIS is best known for its Gauntlet firewall. Larson quoted research data from Computer Security Institute and Zona that puts Gauntlet in second place in the firewall league, after FireWall-1 from CheckPoint Software Technologies. TIS also sells Gauntlet Global Virtual Private Networks and Stalker, an intrusion detection program.
However, Larson indicates that Network Associates was not only after TIS' product portfolio. The company also has a strong consultancy arm, which Larson hopes to use to jumpstart Network Associates in the services business.
Larson said Network Associates intends to become a solution provider and integrator. He said the consultancy arm of the company would be "more the Oracle model than the EDS model", suggesting the company would offer integrated solutions built around its own products.
The acquisition of TIS still awaits regulatory approval. According to Network Associates, the deal will be completed in 60 to 90 days.
Network Associates was formed on 1 December, 1997, when antivirus vendor McAfee Associates merged with network security vendor Network General. On the same day, the company announced its first purchase, acquiring encryption vendor PGP for $36 million. For 1997, Network Associates reported $612 million revenue and profits before charges of $132 million.
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