Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Check Point Software (CHKP) -- Ignore unavailable to you. Want to Upgrade?

To: Maverick who wrote (2202)	4/30/1998 2:26:00 AM
From: blankmind	Respond to of 7150

(02/24/98; 3:57 p.m. ET) - from original network associates announcement Security Software Companies Continue Consolidation By Wylie Wong, Computer Reseller News Anti-virus software maker Network Associates purchased Monday firewall and security software maker Trusted Information Systems (TIS). The stock swap deal, valued at $300 million, is expected to be completed within three months. The move lets the combined company be the first to offer a complete suite of enterprise security products, company officials and analysts said. "This is a fundamental shift in the security software industry, from just developing products to the idea of being a one-stop security solution provider," said analyst Matthew Kovar, of the Yankee Group, in Boston. "Combined, [Network Associates and TIS] have all the pieces they need." Network Associates gets to combine its encryption, authentication, intrusion-detection, and anti-virus software with TIS' Gauntlet firewall technology, VPNs for secure electronic communications and TIS' consulting and training services, said Network Associates' CEO Bill Larson. Stephen Walker, CEO of TIS, in Glenwood, Md., said Monday's buyout allows his company to compete with CheckPoint Software Technologies, the market leader in firewalls. "Adding our products to Network Associates' suites approach is an excellent way to expand sales," he said. "We will be able to challenge CheckPoint's distribution leadership." Kovar said the deal puts pressure on CheckPoint. The Redwood City, Calif.-based company, for example, doesn't offer anti-virus software and doesn't particularly offer strong consulting services, he said. Network Associates said it has become the industry's largest security software company. Larson said his company can now capitalize on TIS' business relationship with the federal government. Kovar agreed, saying the government has purchased Gauntlet products before and might now consider buying Network Associates' virus-scanning and other security software, he said. Kovar said he expects the companies to eventually combine their intrusion software technologies -- Network Associates' Cybercop and TIS' Stalker -- "and mold those two into an outstanding intrusion-detection product." He added that the companies will produce security auditing and assessment software. Assessment software checks for security vulnerabilities on an enterprise. The announcement continues the consolidation of Internet security companies. Network Associates was created last year after the merger between McAfee Associates and Network General. In December 1997, Network Associates acquired Pretty Good Privacy, an encryption software maker.