By Jim Finkle
Jefferies & Co. analyst Katherine Egbert said that while Secure Computing has great technology for protecting computer networks from hackers, it has a reputation for being difficult to use.
"Strategically the deal makes a lot of sense," Egbert said. "But the challenge is going to be getting their products ready for mass distribution."
Friedman, Billings, Ramsey & Co. analyst Daniel Ives said that the deal makes sense for Secure Computing, which began as a unit of Honeywell in 1984 and developed technology to protect computer systems at the U.S. National Security Agency. It was spun off as an independent company in 1989.
The company had struggled over the past year as it replaced its chief executive and its stock languished, losing more than half its value in 2008, versus a 14 percent decline in the Nasdaq Composite Index.
Ives called the McAfee deal "a better choice (for Secure Computer) than continuing to embark down a bumpy road in a tough macro environment."
The companies expect the transaction to close at the end of the fourth quarter of this year.
DeWalt said the acquisition will either have no impact on McAfee's 2009 profit or slightly boost profit for the year.
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