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McAfee to acquire MX Logics for $170 Million
By siliconindia
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Monday, 03 August 2009, 23:39 IST |
1 Comments
Bangalore: McAfee has expressed its consent to acquire security firm MX Logic for $170 million, based on the startup company meeting its certain performance targets. McAfee will pay $140 million in cash plus an additional $30 million in a 'earn out' clause if MX Logic meets McAfee's expectations.
MX Logic is an email and web security startup which promises to boost McAfee's position in "cloud-based security," the companies said in a statement. The firm has around 40,000 customers and about four million end users.
"With today's acquisition, we reinforce our position as a leader in Security-as-a-Service (SaaS) and bring world class email and web defense, including email archiving and continuity services, extending our proven expertise in providing cloud-based services to our customers," stated David DeWalt, CEO, McAfee on the company blog.
MX Logic had raised about $34 million till date, but the fourth round of funding valued the company at $25 million, according to Thomson Reuters. The acquisition marks a sizable exit for MX Logic backers.
The revenue for the second quarter for McAfee reached $469 million, an increase of 18 percent year over year and five percent from the previous quarter.
The second-quarter net income was recorded at $28.7 million, or $0.18 per share, compared with $47.8 million, or $0.30 per share a year ago. Though the sales rose by18 percent to $468.7 million in the quarter, the net income is less by $19.14 million as compared to the same quarter in the previous year.
The company expects to earn $0.58 to $0.62 per share on sales ranging $475 million to $495 million in the current quarter.
