Network Associates to Acquire Security Start-up

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Computer and Web security company Network Associates (NAI) Tuesday said it has inked a deal to acquire IntruVert Networks for $100 million in cash.

Privately-owned IntruVert works under the IntruShield brand of products. The San Jose, Calif.-based company has come up with a security architecture that performs all three types of intrusion detection -- signature-based intrusion detection technology, application anomaly and denial-of-service (DoS) detection techniques.

The company currently sells two rackmount network-based intrusion detection appliances, the IntruShield 4000 and IntruShield 2600. IntruVert competes with other appliance makers Enterasys Networks, Internet Security Systems, Intrusion Inc., and Recourse Technologies.

Santa Clara, Calif.-based NAI said it plans on using IntruVert's next-generation technology as part of its overall product strategy.

"The IntruVert solution is perfectly aligned with our vision of stopping any attack that gets inside the firewall," NAI executive vice president of corporate development and strategic research Sandra England said in a statement. "We will now have the capability of reliably blocking network attacks at multi-gigabit speeds, which is a dramatic improvement over existing intrusion detection products.

In two years of operation, IntruVert has scored a cache of enterprise customers as Prudential Financial, HomeBanc Mortgage Corporation and California State University at Hayward, and government customers such as the United States House of Representatives.

"IntruVert has pioneered the development of next-generation intrusion detection and prevention technology to protect customers from sophisticated cyber-attacks," said IntruVert co-founder, president and CEO Parveen Jain. "With the financial strength, global sales and support infrastructure of Network Associates, we will expand penetration and deployment of our award-winning solutions worldwide."

Network Associates is comprised of three product groups: McAfee Security (anti-virus and security products); Sniffer Technologies (network availability and system security); and Magic Solutions (service management).

Neither company gave details as to which of IntruVert's management or staff would be staying with NAI.

The transaction still has to jump through the usual hoops of regulatory approvals and the approval of IntruVert stockholders. A spokesperson for NAI said the company expects the deal to close within the next 45 days.

The only thing that may stand in the way of the acquisition is an investigation by the U.S. Justice Department into NAI's earnings statements spanning a period of three-years.

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