AOH :: ISNQ5706.HTM

Sourcefire snorts at unsolicited takeover bid




Sourcefire snorts at unsolicited takeover bid
Sourcefire snorts at unsolicited takeover bid



http://www.channelregister.co.uk/2008/05/30/sourcefire_barracuda_rejection/ 

By John Leyden 
Channel Register
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 
its strategy."

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 
stumbling blocks.

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.


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