Network-security company CyberGuard Corp. on Thursday said it has agreed to acquire privately held SnapGear for $16 million in stock and cash.. . .
Network-security company CyberGuard Corp. on Thursday said it has agreed to acquire privately held SnapGear for $16 million in stock and cash.

Under the deal, Fort Lauderdale, Fla.-based CyberGuard will pay $1.6 million in cash and the remainder in stock. The transaction is expected to close by the end of the current quarter.

SnapGear, based in Australia, develops embedded Linux security technology and sells a line of edge firewall and virtual private network (VPN) security appliances for small to medium-size businesses.

Through the acquisition, CyberGuard expects to incorporate SnapGear's embedded Linux technology within its product portfolio. In addition, the network-security vendor believes the additional products will open up new enterprise markets.

"Because SnapGear targets a different market than CyberGuard, their worldwide distribution channel will complement, not replicate, ours," Pat Clawson, president of CyberGuard said in a statement. "We believe this can generate revenue growth for both entities."

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