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.