McAfee has agreed to buy a majority stake in security policy compliance firm Citadel Security in a deal valued at $60m. The deal is designed to bolster McAfee's capabilities in the area of policy enforcement and vulnerability remediation.
The deal will allow McAfee to compete more effectively with competitors such as Symantec, which has also made acquisitions in the area of security risk management, in attempts to build sales of kit designed to help large companies to comply with increasingly stringent corporate governance legislation. Citadel's software also helps to reduce security exposure. McAfee plans to offer the technology alongside its existing ePolicy Orchestrator security management platform.
According to a statement, McAfee's agreement to acquire "substantially all" the assets of Citadel Security will set it back approximately $56m in cash, plus an estimated $4m in working capital reimbursement. The transaction is expected to close in the fourth quarter of 2006, subject to customary closing conditions including Citadel share holder approval. McAfee plans to discuss what the acquisition will do to its bottom line after announcing its Q3 2006 earnings on 26 October. ®