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RealTime IT News

Cobalt to Acquire Progressive Systems

Cobalt Networks Inc. , a provider of server appliances, Tuesday purchased Progressive Systems Inc., a maker of network firewall solutions and appliances.

Cobalt will pay $11 million in cash and stock for Progressive in the deal, expected to close in the third quarter.

According to company officials, the acquisition will enable Cobalt to deliver enhanced security on its server appliances.

Cobalt said the deal will allow it to incorporate more network services and applications into its existing product line.

"As Web oriented commerce continues to surge upward, the demand for higher levels of security will increase," said Stephen DeWitt, president and chief executive officer, Cobalt Network.

Cobalt manufactures server appliances which perform Web hosting and other network functions.