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McAfee announced July 30 that it has agreed to purchase security vendor MX Logic 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 rival, Symantec-has shown interest in. Less than two weeks ago, on July 20, McAfee announced a major push into SAAS with the release of its Total Protection 5.0 service.
“The acquisition of MX Logic will reinforce our position as a leader in security 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 partner ecosystem.”
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 officials reported.
“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.”