Netgear, a provider of networking products, has inked a definitive agreement to acquire the assets of CP Secure, a provider of integrated security solutions.
Under the terms of the agreement, Netgear would pay USD 14.0 million in cash for CP Secure’s assets. CP Secure will receive a total additional payout of up to USD 3.5 million in cash following closure of the acquisition if it achieves certain specified objectives. So, the whole deal amounts to USD 17.5 million in total.
“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,” said Patrick Lo, Chairman and CEO of Netgear.
As per the terms of the transaction, Netgear is acquiring a select team of CP Secure employees, including its Nanjing engineering center 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.
The acquisition, subject to various standard closing conditions, is expected to close in the fourth quarter. Following completion of the transaction, CP Secure’s Chief Executive Officer, Shuang Ji, will become Netgear’s Vice President of Engineering for security products. |
