By John Leyden
30 May 2008
Sourcefire has rejected an unsolicited takeover bid from Barracuda
Networks. The firm, which develops a commercial version of Snort, the
popular open source intrusion detection tool, said Barracuda's $187m bid
"substantially undervalues" Sourcefire.
In a terse statement on Friday, Sourcefire's board said it was better
off as a standalone firm. Joseph Chinnici, chairman of the board of
Sourcefire said: "Sourcefire remains committed to maximizing stockholder
value by continuing with its stated plans to complete its Chief
Executive Officer transition and growing the business by executing on
Barracuda, which is best known for its web and email security
appliances, offered $7.50 per share to acquire Sourcefire on Thursday,
representing a premium of 13 per cent on Sourcefire's closing price on
23 May. Barracuda said that the future of Snort as an open-source
project was safe in its hands.
Barracuda's products use a combination of open source tecnologies
(including Clam anti-virus) as well as proprietary technologies.
Sourcefire acquired Clam anti-virus in August 2007.
In a letter to Sourcefire's board, Barracuda asserted that it was better
equipped than Sourcefire existing management in dealing with patent
threats from Trend Micro over Clam anti-virus.
Sourcefire's planned merger with Check Point in 2005 fell foul of US
government security concerns over the implications of using technology
controlled by an Israeli firm to protect sensitive government systems.
Privately-owned Barracuda reckons its bid would avoid such regulatory
Sourcefire went public in March 2007, reaching a $16 high last June
before slipping to a low of $5 in late January. Shares in the firm rose
97 cents to reach $7.60 in early trading on Friday.
Attend Black Hat USA, August 2-7 in Las Vegas,
the world's premier technical event for ICT security experts.
Featuring 40 hands-on training courses and 80 Briefings
presentations with lots of new content and new tools.
Network with 4,000 delegates from 50 nations.
Visit product displays by 30 top sponsors in
a relaxed setting. http://www.blackhat.com