Check Point Software Technologies to acquire Sourcefire for $225mn

10/07/05 - newratings.com

NEW YORK, October 7 (newratings.com) – Israel-based Check Point Software Technologies Ltd (CHKP), a leading developer of internet security products, Thursday announced the acquisition of privately-held Sourcefire Inc for $225 million. The company also reduced its revenue guidance for the third quarter.

The deal has been approved by the board of directors of both the companies and the shareholders in Sourcefire. The purchase, expected to close in the first quarter of the next year, is subject to regulatory approvals. The transaction involves cash payment and the assumption of Sourcefire’s stock option plan. Check Point Software’s chairman and CEO, Gill Shwed, said the acquisition will enable the company to offer a wide range of internet security products. The company also announced on Thursday that its third quarter revenues are expected to be at the lower end of its previous forecast of $140-150 million due to the push over of some of its business to the fourth quarter.