McAfee agrees to buy security vendor MX Logic for $140 million to bolster its software-as-a-service business. The deal follows McAfee's recent announcement that it will be looking to expand its SAAS footprint among enterprises.
announced July 30 that it has agreed to purchase security vendor MX
for $140 million to help build out its software-as-a-service business.
MX Logic specializes in cloud-based e-mail and Web security, an area McAfee-as
well as its chief
-has shown interest in. Less than two weeks ago, on July 20,
announced a major push into SAAS
with the release of its Total Protection
"The acquisition of MX Logic will reinforce our position as a leader in
as a service,
and brings world-class e-mail and Web defense, including
archiving and business continuity services, extending our proven expertise in
providing cloud-based services to our customers," McAfee CEO
Dave DeWalt said in a statement. "MX Logic aligns with the McAfee vision
to lead Security SAAS by bringing industry-leading technologies and a strong
MX Logic provides about 40,000 customers-more than 4 million end users-with
e-mail and Web security, e-mail archiving and continuity services. In addition,
McAfee noted that MX Logic has more than 1,800 channel partners, which
officials said provides a strong partner ecosystem to cross-sell McAfee SAAS
products and develop co-branded and bundled offerings.
Any overlap between McAfee and MX Logic's offerings will be
reconciled and integrated over time, said Melissa Siems, director of SAAS
marketing for McAfee, in an e-mail to eWEEK.
The deal is expected to close in the third quarter. While McAfee will pay
$140 million in cash upon closing, there is an additional payment of $30
million in cash if certain performance targets are met. When the deal is
complete, "the MX Logic team will report to the McAfee
Software-as-a-Service business unit, headed by Marc Olesen, senior vice
president and general manager," McAfee said in its news release.
News of the acquisition came the same day McAfee announced that its net
revenue for the second quarter rose 18 percent year over year to $468.7
million. Revenue for its corporate business grew 21
percent year over year to a record $291 million for the quarter, company
"With our pending acquisition of MX Logic, McAfee expects to ... bring
customers enhanced cloud-based e-mail and Web security with archiving in a
rapidly growing segment," DeWalt said in a separate statement released
with the earnings report. "This combination will give customers greater
access to critical messaging SAAS offerings and an expanded network of partners
across the world."