McAfee to Help Organizations Automate the Discovery and Protection of Data
SANTA CLARA, Calif. and MOUNTAIN VIEW, Calif., July 31
/PRNewswire-FirstCall/ -- McAfee, Inc. (NYSE: MFE) today announced a
definitive agreement to acquire privately owned Reconnex for $46 million in
cash. Reconnex is a leading data loss prevention (DLP) company with unique
technology that learns and adapts to automate the ongoing protection of
data.
"Data protection is the number one concern of chief information
security officer's, but today's DLP solutions take too long to deploy and
obtain results," said Dave DeWalt, chief executive officer and president of
McAfee. "With the pending acquisition of Reconnex, McAfee expects to
redefine the entire data protection market by bringing together a leader in
the hottest segment with our comprehensive portfolio of data protection
technologies. We expect that this will enable us to leapfrog other data
protection vendors and to reinforce our position as the largest dedicated
security company."
Reconnex's technology helps an organization protect all the information
assets on its network without requiring upfront knowledge of what needs to
be protected, regardless of how that information is stored, secured or
communicated. Through the pending acquisition of Reconnex, McAfee(R)
expects to further enhance its leadership position in proactive security
and risk management solutions.
"The growing number of high-profile incidents in which customer
records, confidential information and intellectual property were leaked (or
lost/stolen) has created an explosive demand for solutions that protect
against the deliberate or inadvertent release of sensitive information,"
said Brian Burke, security research analyst at IDC. "This acquisition
creates a great opportunity for McAfee to fulfill a critical need in this
space. IDC forecasts worldwide revenue for the information protection and
control (IPC) market to grow from $765 million in 2006 to $3.2 billion in
2011, representing a 33% compound annual growth rate. Reconnex's
gateway-based technology perfectly compliments McAfee's existing host based
data protection solution and will position McAfee securely in this space."
Reconnex's products align with McAfee's vision to provide a complete
data protection and compliance solution to its customers, meeting the
significant demand for adaptive data protection. With more than 60 million
nodes managed by McAfee ePolicy Orchestrator(R) (ePO(TM)), McAfee can bring
automated, centrally managed and adaptive protection to its existing
customer base and further help users enhance the value of their current
investments.
"As a joint customer of both McAfee and Reconnex, we believe the
combination of their technologies will significantly benefit our network
security operations," said Joshua Davis, director of Information Security
and Compliance at Qualcomm Incorporated. "Managing our system network
protection under one management console will provide us a more
comprehensive view into our security infrastructure."
"We expect this acquisition to help McAfee solve the bigger, tougher
data protection problems inhibiting current DLP deployments and will result
in tremendous opportunities for our collective customers and partners,"
said John Peters, chief executive officer of Reconnex. "Our technology
helps businesses answer the two fundamental questions of what to protect
and from whom. McAfee will be better equipped to help organizations address
the complexity and time involved in the deployment and management of data
protection."
Reconnex has solved the current problems with DLP through innovative
learning technology that indexes, classifies and understands the context of
all content within or as it leaves an organization. Reconnex's "knowledge
mining" capability helps businesses tackle the fear of the unknown.
Businesses don't need to know what they should protect, because the
technology can help them find, analyze and classify their data.
The acquisition is expected to close in the third quarter of 2008.
McAfee anticipates that following the closing, Reconnex's technologies will
be incorporated under McAfee's Data Protection product business unit,
headed by Gerhard Watzinger.
For additional information, please reference
http://www.mcafee.com/enddataanxiety.
Forward-Looking Statements:
This release contains forward-looking statements, which include those
regarding McAfee's future plans for the Reconnex business, the expected
closing date of the acquisition, the expectations as to the growth
opportunities from the acquisition of the Reconnex business and McAfee's
expected plans for the integration of Reconnex products. Factors that could
cause McAfee's actual realization of expected financial and other
investments of the acquisition to be materially different from those
anticipated include among others, the inability to integrate successfully
Reconnex within McAfee or to realize synergies from such integration; costs
related to the acquisition of Reconnex inability to obtain necessary
regulatory approval or to obtain them on acceptable terms; the economic
environment of the industries in which McAfee and Reconnex operate, as well
as facts relating to Reconnex that may impact the timing or amount of
synergies they can be realized and that are unknown to McAfee. In addition,
actual results are subject to other risks and uncertainties that relate
more broadly to McAfee's overall business, including those more fully
described in McAfee's filings with the SEC including its annual report on
Form 10-K for the year ended December 31, 2005, and its quarterly report
filed on Form 10-Q for the first quarter of 2008.
About McAfee, Inc.
McAfee, Inc. is the leading dedicated security technology company.
Headquartered in Santa Clara, California, McAfee delivers proactive and
proven solutions and services that secure systems and networks around the
world. With its unmatched security expertise and commitment to innovation,
McAfee empowers home users, businesses, the public sector, and service
providers with the ability to block attacks, prevent disruptions and
continuously track and improve their security. http://www.McAfee.com.
About Reconnex
Reconnex is the leader in data loss prevention appliances, which are
designed for any organization -- including enterprises, government
agencies, or educational institutions -- that want to protect its brand,
maintain compliance, or secure sensitive information. Reconnex delivers a
patented learning application that allows organizations to quickly identify
their sensitive data, their business process, and gain better insight into
risk. A privately held company based in Silicon Valley, Calif., Reconnex
protects information for over 1.5 million users today. For more information
about Reconnex, please visit http://www.reconnex.net or call 866-940-4590.
NOTE: McAfee and ePolicy Orchestrator are registered trademarks of
McAfee, Inc. and/or its affiliates in the U.S. and/or other countries.
McAfee Red in connection with security is distinctive of McAfee brand
products. All other registered and unregistered trademarks herein are the
sole property of their respective owners. (C) 2007 McAfee, Inc. All rights
reserved.
SOURCE McAfee, Inc.
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Related links:
http://www.mcafee.com
CONTACT:
Investor Relations, Kelsey Doherty,
+1-917-842-0334, Kelsey_Doherty@McAfee.com, or Brandie Claborn,
+1-214-208-5042, brandie_claborn@McAfee.com, both of McAfee,
Inc., or Public Relations, Tracy Ross of McAfee, Inc.,
+1-650-245-8466, Tracy_Ross@McAfee.com; or Ian Bain of Red
Consultancy, +1-415-618-8806, Ian.Bain@RedConsultancy.com, for
McAfee, Inc.
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