RealTime IT News

CyberGuard Sells Arca to Exodus

Security and e-commerce company CyberGuard Corp. on Monday sold its Arca Systems professional services unit to Exodus Communications Inc. for $3.4 million in cash.

CyberGuard said it also received unspecified compensation it paid to former Arca shareholders when it originally purchased Arca.

CyberGuard officials said the deal will allow it to strengthen its cash position and focus on increasing its e-commerce and network security businesses.

"The sale of Arca Systems is a positive development for both companies because it supports the refocus of CyberGuard's core business objectives while enhancing Exodus' security offerings," said Tommy Steele, CyberGuard's president and chief executive officer.

Bill Wilson, president of Arca Systems and Ellen Hancock, president and chief executive of Exodus, said the two companies would continue to work together on network security and electronic commerce products for both companies business and government customers.

"We are pleased to have Arca Systems join Exodus and expect this acquisition to allow us to work more closely with CyberGuard and its enterprise customers," Hancock said.

Hancock, former chief technology officer at Apple Computer Inc., joined the company after being ousted at Apple in 1997 along with former chief Gil Amelio. She was promoted to CEO in early September.