December 17, 2003 — (WEB HOST INDUSTRY REVIEW) — VeriSign, Inc. (verisign.com) said today that it has entered into a definitive agreement to acquire Guardent (guardent.com), a managed security services provider. VeriSign said the acquisition is subject to regulatory approvals and is expected to close in the first quarter of 2004.
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Under the terms of the agreement, VeriSign will pay approximately $140 million in stock and cash for the stock of Guardent.
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The company said the acquisition unites two leading providers of managed security services and forms a combined company with one of the largest suites of network security devices under its management.
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“In addition to being a world class company in its own right, Guardent is a perfect strategic fit,” said Stratton Sclavos, CEO of VeriSign. “By combining forces, we will solidify VeriSign’s leadership in network security, one of the foundational elements of our Intelligence and Control Services strategy. Moreover, by tapping into Guardent’s expanded customer base, its vulnerability management technology, and security expertise, we can deliver an even wider base of intra-enterprise, inter-enterprise, and Internet-wide intelligence to our customers.”
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VeriSign will add approximately 150 full-time Guardent employees with the deal and Guardent’s Security Operations Center (SOC), located in Providence, RI, will become one of the managed security service operations centers for VeriSign.
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“This acquisition should be of enormous benefit to both organizations’ customers,” said Maria Cirino, CEO of Guardent. “Guardent’s customers will benefit from VeriSign’s infrastructure, intelligence, and global reach. VeriSign customers will benefit from access to technologies, such as Guardent’s Security Defense Appliance and enhanced vulnerability management. All customers will benefit from an accelerated pace of innovation, operational enhancements, and global expansion.”
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VeriSign said that once the acquisition is complete, Maria Cirino will be named as senior vice president and general manager of managed security services. Cirino will report to Judy Lin, executive vice president and general manager of VeriSign’s Security and Payment Division.
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VeriSign said it expects the acquisition to be neutral to its 2004 earnings.
