New Delhi
Netgear has announced the execution of CP Secure, Inc. According to the
agreement, Netgear will pay $14.0 million in cash for CP Secure's assets.
CP Secure will receive a total additional payout of up to $3.5 million in
cash following closure of the acquisition if it achieves certain specified
objectives.
Shuang Ji, the CEO of CP Secure will be appointed as Netgear's
VP-Engineering for security products after the transaction.
"As SMBs increasingly rely on web 2.0 and e-mail applications to conduct
business with customers, partners, and vendors alike, SMBs are increasingly
seeking effective and easy-to-administer integrated solutions to safeguard
their networks and applications from Internet threats and ensure business
continuity," said Patrick Lo, Chairman and CEO, Netgear.
Under the terms of the transaction, Netgear is acquiring a select team of
CP Secure employees, including its Nanjing Engineering Center with over 40
engineering professionals, its pending patents, proprietary technologies,
customer base, current products, and products in development.
Netgear intends to release a full line of Netgear ProSecure security
appliances for web, e-mail and unified threat management incorporating CP
Secure's platform within the next 12 months. The addition of CP Secure's
seasoned engineering team forms a dedicated, world-class group focused on
hardware, software, and technology for network security appliances.