Here's something that I think is more *indirect* good news. It comes from www.wsj.com
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Secure Computing Shares Gain
Amid Consolidation in Industry
Dow Jones Newswires
SAN JOSE, Calif. -- Secure Computing Corp. shares rose 17%
Monday, as rumors circulated that the company could be the next
to be snapped up as an acquisition.
The computer security sector has been rife with merger and
acquisition activity as technology firms move to integrate computer
security products into their networking offerings.
Last month, Axent Technologies Inc. and Raptor Systems Inc.
shareholders approved a merger of the two companies valued at
$245 million. Not long after, Network Associates Inc. -- itself the
product of the December marriage between Network General
Corp. and McAfee Associates -- reached an agreement to
acquire Trusted Information Systems Inc. in a deal valued at $300
million.
"There's been a lot of M&A going on," said Arthur Newman, an
analyst with Gerard Klauer Mattison & Co. who follows the
computer security sector.
In such a climate, analysts said Secure Computing, which offers a
firewall security product, could be a target for a company that is
hoping to integrate security features into its offerings.
"The Secure Computing product portfolio is fairly robust," said
Paul Merenbloon, an analyst with Prudential Securities Inc. He
said the company "clearly could be a very good fit to a number of
suitors," but declined to name any in particular.
Kama Krishna, an analyst with Laidlaw Global Securities, said
Secure would be most attractive to a "huge networking company
that wants to get into security." Such a deal would be part of the
development of what Mr. Krishna sees as the next wave in the
security sector: "one-stop shopping" offered by larger networking
companies that have absorbed smaller security companies.
Pacific Growth Equities Inc. analyst Stephen Franco made a
similar forecast in a research note published last week. "While we
continue to expect a growing market for leading security point
products," he wrote, "we believe the next stage of development will
be driven by vendors who can provide integrated solutions."
Mr. Krishna noted that the growth in electronic commerce makes
the ability to ensure security on networks more important. That, in
part, he said, has been a driving force behind the recent run-up in
security companies' shares.
Monday, Secure Computing shares rose $2.0625 to $14 on
volume of nearly 1.7 million shares, more than 10 times the daily
average of 162,600.
A Secure Computing official didn't immediately return calls
seeking comment. |
