Network Associates Secures Deal For $300M With TIS
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The emerging consolidation of Internet security software continues with Network Associates agreeing to acquire Trusted Information Systems (NASDAQ:TISX) for $300 million stock or 0.323 shares for each share of TISX.
That's $20.188 per share based on Network Associates (NASDAQ:NETA) closing price of $62.50. That represents a 60% premium to the price of Trusted Information shares, which closed at $12.625 Friday.
In the October 10 edition of Internet Stock Report we predicted that consolidation would erupt in this sector as firms look to provide end-to-end turnkey solutions, rather than just one product.
Who's next? We're still waiting for CheckPoint Software (NASDAQ:CHKPF) and Security Dynamics (NASDAQ:SDTI) to make moves. If they don't, they may find the best have been cherry picked.