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.
