Sourcefire acquires anti-malware vendor Immunet

My friend Tony Welz, PR man for Sourcefire, just dropped me a note to say that company — best known for its open-source Snort IDS tool — is acquiring anti-malware provider Immunet.

Tony said in his note:

“This acquisition immediately enables Sourcefire to provide endpoint protection from client-side attacks and Advanced Persistent Threats (APT). In addition, the cloud-based platform enables innovative approaches to reputation services, data loss prevention and forensics.”

This announcement comes right on the heels of Dell’s announced acquisition of SecureWorks. With the RSA security conference next month, I wouldn’t be surprised in the least if we hear about more acquisitions, as vendors try to make news during the event.

Here’s the raw press release of the Sourcefire-Immunet union:

PRESS RELEASE:

Sourcefire Announces Acquisition of Immunet

Expands Cloud-based Security Infrastructure

COLUMBIA, Md.–(BUSINESS WIRE)–Sourcefire, Inc. (Nasdaq: FIRE), the creator of SnortŽ and a leader in intelligent cybersecurity solutions, today announced the acquisition of Immunet, a leading provider of advanced cloud-based anti-malware technologies. The acquisition expands Sourcefire’s security solutions portfolio – adding an advanced cloud platform for delivery of malware protection – and extending the company’s real-time detection and prevention leadership to the cloud.

“Sourcefire is the perfect company to accelerate Immunet’s path to market”

Immunet combines the collective intelligence of a growing user community, the speed of cloud computing, advanced data mining, and machine learning technologies to provide a groundbreaking approach to cybersecurity. This acquisition immediately enables Sourcefire to provide endpoint protection from client-side attacks and Advanced Persistent Threats (APT). The cloud-based platform also enables innovative approaches to reputation services, data loss prevention and forensics. Combined with Sourcefire’s next generation network intrusion prevention system (IPS), customers get the most comprehensive protection against today’s threats from cloud to core.

“Immunet is a disruptive innovator in delivering cloud-based security solutions with over 750,000 users in 192 countries,” said John Burris, CEO of Sourcefire. “This acquisition enables Sourcefire to accelerate our cloud initiatives and provides significant value to customers by protecting them against advanced client-side attacks. Immunet’s technologies build upon Sourcefire’s reputation for providing customers with innovative solutions that protect them from the latest threats.”

Sourcefire will retain all fulltime Immunet personnel, including founders Oliver Friedrichs, Alfred Huger and Adam O’Donnell. Immunet employees will join Sourcefire within the Office of the CTO.

“Sourcefire is the perfect company to accelerate Immunet’s path to market,” said Oliver Friedrichs, Immunet Founder and CEO. “Sourcefire secures organizations and individuals worldwide with advanced network security technology. Adding an internet-scale, advanced cloud platform catapults Sourcefire into a leadership position in endpoint protection as well.”

The addition of Immunet further builds Sourcefire’s position as a leading provider of intelligent cybersecurity solutions, following its Next-Generation Intrusion Prevention System (NGIPS), Next-Generation Firewall (NGFW) and Razorback announcements in 2010.

Financial Overview of Transaction

The total acquisition price is $21 million in cash, which included $17 million paid at closing and $4 million expected to be paid over the next 18 months upon achievement of product delivery milestones related to the enterprise version of Immunet’s product.

Immunet has a subscription-based business model and is expected to grow bookings at a rapid pace in 2011, though its contribution to revenue is expected to be minimal over the same time period. With expenses being recognized on an as incurred basis, Sourcefire currently expects Immunet to be dilutive to 2011 adjusted net income per diluted share by approximately $0.10. Adjusted net income per share is a non-GAAP financial measure and excludes stock-based compensation expense and amortization of acquisition intangibles and assumes an effective tax rate of 35%. The acquisition is expected to be at least neutral to adjusted net income per diluted share in 2012 and accretive thereafter. Sourcefire plans to provide information on the expected impact on GAAP net income per diluted share after it has completed the valuation analysis related to the acquisition.

Conference Call and Webcast

On Wednesday, January 5, 2011 at 5:00 p.m. Eastern Time, Sourcefire will host a conference call to discuss the acquisition of Immunet, preliminary fourth quarter results and initial 2011 outlook. A listen-only web cast of the session and a presentation will be available at http://investor.sourcefire.com. Those wishing to participate in the live session should use the following numbers to dial in:

Calling from the United States or Canada: 800-510-9834

Calling from other countries: 617-614-3669

Pass code: 90680366

An online replay will be available at http://investor.sourcefire.com following the completion of the live call and will remain available for at least 90 days.

–Bill Brenner