McAfee Deepens Security Reach

Anti-virus heavyweight McAfee (formerly Network Associates) plans to
shell out $86 million in cash to acquire risk management consultant
Foundstone in a move aimed at strengthening its enterprise security

McAfee , known for its network monitoring and
troubleshooting programs, said the deal provides an entry into the
vulnerability assessment and IT management market.

It extends the shopping spree
started by Network Associates last year that included the $120
million acquisition of Entercept Security Technologies and the $100 million
cash deal for IntruVert Networks.

Foundstone, which hawks software, appliances and consulting services for
enterprises looking to monitor security risk, gives McAfee a major presence
in a business that is ripe for the taking.

With malicious hacker attacks on the rise, businesses have turned to
technology to prioritize threats and vulnerabilities. Research firm IDC has
projected the vulnerability assessment and risk management market to reach
$1.6 billion by 2008.

“Chief information security officers need a comprehensive view of where
their risks are, and business executives need to understand how those risks
can translate into business impact,” said McAfee
CEO George Samenuk. “Foundstone enables both.”

The deal also includes Foundstone’s customer base of more than 400 large
enterprises that include the likes of AT&T and Motorola
, as well as several government agencies.

Once the deal clears regulatory hurdles, McAfee plans to sell the Foundstone
line of products under that brand.

The Foundstone purchase is the first major move by McAfee since the April
announcement of a dramatic restructuring plan
that included a $275 million deal to sell its Sniffer

That move included the adoption of the McAfee name and a narrower focus
on Internet security products and services. McAfee is also in the midst of a
fundamental redesign of internal back office systems, a modification of
product designs and Web Services changes to the reseller and distribution

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