Check Point pays $586m. for Protect Data AB

The deal price represents a 39% premium to the average closing price of Protect Data's shares in the past 90 trading days.

By ROBERT DANIEL, MARKETWATCH
November 21, 2006 08:05
1 minute read.
checkpoint logo 88

checkpoint logo 88. (photo credit: )

MarketWatch: In-depth global business coverage Check Point Software Technologies Ltd., a producer of solutions to secure Internet-based networks against intruders, said Monday it would acquire Protect Data AB for 180 Swedish kronor a share, for a total of 4.15 billion kronor, or $586 million. Protect Data is parent to Pointsec Mobile Technologies AB, a provider of data-security systems for enterprises. By acquiring Pointsec, which secures data delivered over devices like laptop and desktop PCs, personal digital assistants and cell phones, Check Point said it "initiates the next phase of its corporate strategy: the addition of a data-security-solution layer." More and more, companies of all sizes in all fields have mobile and remotely based employees who need data from their networks delivered securely, said Check Point, adding that Pointsec's automatic data-encryption solutions provide that protection at the endpoint. "With businesses facing increasingly severe consequences from data breaches and a stricter regulatory environment...protection must extend beyond the infrastructure to the data itself," said Gil Shwed, chief executive of Check Point, based in Ramat Gan. "It's good for them" and at the same time "it's a challenge," said Avshalom Shimei, who follows the company for HSBC out of Tel Aviv. Analysts were looking for the company to find "a new growth engine," he said. Protect Data's board backs Check Point's offer, Check Point said. The deal price represents a 39 percent premium to the average closing price of Protect Data's shares in the past 90 trading days. Holders of more than 90% of all Protect Data shares, before and after dilution, must approve the transaction, Check Point said. Protect Data's largest shareholder, Monterro Holding Ltd., has agreed to tender its 10.46% of the company to the offer. The deal is also subject to regulatory clearance and other conditions. Protect Data was founded in 1988 and went public on the Stockholm Stock Exchange in 1997. In the first nine months of 2006, Protect Data's after-tax profit more than doubled to $8.3 million as revenue grew 92% to $52.4m. Check Point retained SEB Enskilda as financial adviser on the deal. In addition, Lehman Brothers provided both financial advice and a fairness opinion to Check Point's board. MarketWatch: In-depth global business coverage


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