Check Point calls off acquisition of US company Sourcefire
The move follows an extended investigation by CFIUS into whether the proposed acquisition posed risks to US security.
Globes correspondent 24 Mar 06 07:17
Check Point Software Technologies (Nasdaq: CHKP) and US company Sourcefire have withdrawn their application to the Committee on Foreign Investment in the US (CFIUS) to allow Check Point to buy Sourcefire. Israeli network security company Check Point was to have bought Sourcefire of the US for $225 million.
The acquisition was announced in October last year. In March this year, the CFIUS, which examines whether investments by foreign companies are liable to harm US security, announced that it was opening a 45-day inquiry into the deal, longer than the usual 30-day check. Sourcefire's Snort product is in use by the US government.
The companies said they had determined that it would be more effective to create a customer focused business partnership. "We've decided to pursue alternative ways for Check Point and Sourcefire to partner in order to bring to market the most comprehensive security solutions," said Check Point's CEO Gil Shwed.
The statement issued by the companies said, "Check Point and Sourcefire will continue to create and distribute the best security solutions in their respective spaces. They will work together on formulating a partnership strategy moving forward and will keep customers and partners updated as new plans are developed."
Published by Globes [online], Israel business news - www.globes.co.il - on March 24, 2006
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