Niigata Global - McAfee Buy Stonesoft for $389 Million.

Online, June 21, 2013 (Newswire.com) - Niigata Global are understood to have announced in a recent meeting that Intel, owned McAfee, looks set to acquire Finnish firewall experts Stonesoft in a $389 million deal.

Intel Corp., the largest computer chip maker in the world, has offered $389 million to acquire Finnish firewall company Stonesoft through their McAfee software security unit. A spokesperson for Intel confirmed that shareholders of Stonesoft would receive more than double the pre-offer share price.

Niigata Global allegedly noted that firewalls are software-based systems through which all data entering or leaving a network must pass, meeting the defined security parameters as it does so. An increase in high profile hacks and security breaches has created an increased demand for security products in recent years.

"With the pending addition of Stonesoft's products and services, McAfee is making a significant investment in next-generation firewall technology. These solutions anticipate emerging customer needs in a continually evolving threat landscape," said Michael DeCesare, McAfee President. "Stonesoft is a leading innovator in this important market segment. We plan to integrate Stonesoft's offerings with other McAfee products to realize the power of McAfee's Security Connected strategy. Stonesoft products will benefit from the collective expertise of more than 7,200 McAfee employees. Leveraging McAfee's cloud-based Global Threat Intelligence service will provide our combined customers with unparalleled security."

The trend for increased cyber security is set to continue as more and more high profile breaches are reported and as hacktivists groups such as Anonymous gain more exposure there is strong potential for growth for Stonesoft, it ties in well with Intel's McAfee product line while the offer price is certainly very attractive.

"The combination of the two companies allows Stonesoft to benefit from McAfee's global presence and sales organization of over 2,200 employees, best-in-class threat research and technology synergies" said Ilkka Hiidenheimo, Chief Executive Officer of Stonesoft. "Combined, we believe we can offer our customers a world-class product portfolio with world-class support - all backed by Intel."

The acquisition will enable McAfee to broaden its security offerings and aid its competition with rival Symantec Corp. Intel paid $7.7 billion for McAfee two years ago as they sought to add security expertise to their chip-making core.

Niigata Global reportedly highlighted that Intel's $5.90 per share offer is a 128 percent premium over Stonesoft's pre-offer share price. This compares favorably to the 96 percent average premium paid on security technology deals completed in the last year.