McAfee, Inc. has announced a definitive agreement to acquire privately owned Reconnex for $46 million in cash. Reconnex is a leading data loss prevention (DLP) company with unique technology that learns and adapts to automate the ongoing protection of data.
Data protection is the number one concern of chief information security officers, but todays DLP solutions take too long to deploy and obtain results, said Dave DeWalt, chief executive officer and president of McAfee. With the pending acquisition of Reconnex, McAfee expects to redefine the entire data protection market by bringing together a leader in the hottest segment with our comprehensive portfolio of data protection technologies. We expect that this will enable us to leapfrog other data protection vendors and to reinforce our position as the largest dedicated security company.
Reconnexs technology helps an organisation protect all the information assets on its network without requiring upfront knowledge of what needs to be protected, regardless of how that information is stored, secured or communicated. Through the pending acquisition of Reconnex, McAfee expects to further enhance its leadership position in proactive security and risk management solutions.
The growing number of high-profile incidents in which customer records, confidential information and intellectual property were leaked (or lost/stolen) has created an explosive demand for solutions that protect against the deliberate or inadvertent release of sensitive information, said Brian Burke, security research analyst at IDC. This acquisition creates a great opportunity for McAfee to fulfil a critical need in this space. IDC forecasts worldwide revenue for the information protection and control (IPC) market to grow from $765 million in 2006 to $3.2 billion in 2011, representing a 33% compound annual growth rate. Reconnex's gateway-based technology perfectly compliments McAfee's existing host based data protection solution and will position McAfee securely in this space.
Reconnexs products align with McAfees vision to provide a complete data protection and compliance solution to its customers, meeting the significant demand for adaptive data protection. With more than 60 million nodes managed by McAfee ePolicy Orchestrator (ePO), McAfee can bring automated, centrally managed and adaptive protection to its existing customer base and further help users enhance the value of their current investments.
As a joint customer of both McAfee and Reconnex, we believe the combination of their technologies will significantly benefit our network security operations, said Joshua Davis, director of Information Security and Compliance at Qualcomm Incorporated. Managing our system network protection under one management console will provide us a more comprehensive view into our security infrastructure.
We expect this acquisition to help McAfee solve the bigger, tougher data protection problems inhibiting current DLP deployments and will result in tremendous opportunities for our collective customers and partners, said John Peters, chief executive officer of Reconnex. Our technology helps businesses answer the two fundamental questions of what to protect and from whom. McAfee will be better equipped to help organisations address the complexity and time involved in the deployment and management of data protection.
Reconnex has solved the current problems with DLP through innovative learning technology that indexes, classifies and understands the context of all content within or as it leaves an organisation. Reconnexs knowledge mining capability helps businesses tackle the fear of the unknown. Businesses dont need to know what they should protect, because the technology can help them find, analyse and classify their data.
The acquisition is expected to close in the third quarter of 2008. McAfee anticipates that following the closing, Reconnexs technologies will be incorporated under McAfees Data Protection product business unit, headed by Gerhard Watzinger.
About McAfee, Inc.
McAfee, Inc. is the leading dedicated security technology company. Headquartered in Santa Clara, California, McAfee delivers proactive and proven solutions and services that secure systems and networks around the world. With its unmatched security expertise and commitment to innovation, McAfee empowers home users, businesses, the public sector, and service providers with the ability to block attacks, prevent disruptions and continuously track and improve their security.
Reconnex is the leader in data loss prevention appliances, which are designed for any organisation including enterprises, government agencies, or educational institutionsthat want to protect its brand, maintain compliance, or secure sensitive information. Reconnex delivers a patented learning application that allows organisations to quickly identify their sensitive data, their business process, and gain better insight into risk. A privately held company based in Silicon Valley, Calif., Reconnex protects information for over 1.5 million users today.