McAfee, Inc. to Acquire SafeBoot B.V. for $350 Million SafeBoot Acquisition Allows McAfee to Offer the Industry's Most Complete

Data Protection Solution



    SANTA CLARA, Calif. and NAPLES, Fla., Oct. 8 /PRNewswire-FirstCall/ --
 McAfee, Inc. (NYSE:   MFE) today announced a definitive agreement to acquire
 privately owned SafeBoot B.V. for $350 million in cash. SafeBoot is an
 enterprise security software vendor that is a leader in the rapidly growing
 market for data protection via encryption and access control.
     SafeBoot delivers enterprise-class encryption and leads the mobile
 security market with its fully integrated end-point security and content
 encryption solutions. Adding SafeBoot's technologies and products will
 extend McAfee's Security Risk Management vision, and position McAfee as the
 leading security vendor to offer data loss prevention and encryption at the
 end-point with scalable centralized management.
     The rationale for the transaction is as follows:
 
     -- With the acquisition of SafeBoot, McAfee becomes the leader in a
        multi-billion data protection market that is highly under-penetrated
     -- McAfee has more than 100 million desktops under management and believes
        SafeBoot offers a strong complement to its existing offerings
     -- SafeBoot's end-point encryption franchise coupled with McAfee's Data
        Loss Prevention and ePolicyOrchestrator management capability creates a
        compelling, industry-leading data protection solution
     -- McAfee, with its worldwide distribution network, expects to leverage
        SafeBoot's highly acclaimed product line which is currently offered in
        over 20 languages and in 76 countries
     -- Encryption addresses all three of McAfee's market segments from the
        enterprise of one to the enterprise of thousands
     -- Finally, SafeBoot's mobile phone offerings will help accelerate
        McAfee's current mobile solutions by allowing McAfee to offer a new
        comprehensive suite of integrated device protection and data security.
     "SafeBoot's industry-leading mobile security solutions address a
 critical pain point for customers -- the protection of confidential and
 proprietary information," said Dave DeWalt chief executive officer and
 president of McAfee. "With the acquisition of SafeBoot, McAfee becomes a
 leader in the fast-growing $1 billion encryption market and we will be able
 to offer a complete data protection solution that combines SafeBoot's
 device, full-disk and content encryption with McAfee's data loss prevention
 solutions. This combination helps advance our Security Risk Management
 strategy and extend our leadership at the end-point."
     "We believe this acquisition will deliver a very attractive return for
 our shareholders," said Eric F. Brown, chief financial officer and chief
 operating officer, McAfee. "The combination of these two companies creates
 opportunities to build top-line synergies and generate additional growth by
 leveraging the combined product, technology and sales and marketing
 capabilities of both companies, to deliver best-in-class data protection."
     Based on conservative assumptions, McAfee expects this transaction to
 be dilutive to 2008 GAAP earnings per share and neutral to 2008 non-GAAP
 earnings per share.
     Following the closing, SafeBoot's technologies and McAfee's Data Loss
 Prevention solutions will become the foundation for a new Data Protection
 product business unit, headed by Gerhard Watzinger who will report to
 McAfee CEO Dave DeWalt.
     SafeBoot is the encryption vendor to more than 4,200 customers,
 including more than 150 listed in the Fortune 500. Its customer base is
 geographically diverse, with about 47 percent in Europe, the Middle East
 and Asia, 29 percent in North America, and 23 percent in Asia Pacific. The
 company retained almost all of its customers in 2006.
     The SafeBoot Data Protection Suite enables users to encrypt individual
 files and folders as well as the entire local hard drive for the widest
 possible range of mobile devices, including laptops, smart phones, USB
 drives and PDAs. SafeBoot data protection suite also enables users to
 encrypt file servers and provides protection to ensure that confidential
 files remain secure as they move throughout an organization. The company
 has focused on the enterprise market and offers centralized management as
 well as the ability to integrate with existing IT systems, support for a
 wide range of platforms, multiple languages and comprehensive auditing.
 McAfee plans to integrate these products into ePolicy Orchestrator (ePO),
 McAfee's centralized management console for enterprise customers.
     By adding SafeBoot's encryption technology and enterprise management
 tools, McAfee will further advance its enterprise data protection
 offerings, and pursue SafeBoot's significant and untapped opportunities in
 the SMB and consumer markets. This combination will enable McAfee customers
 to deploy encryption technology that is integrated with McAfee security
 solutions, while providing SafeBoot customers with the ability to integrate
 McAfee products into their current SafeBoot deployment.
     "We view McAfee as the leading dedicated security company, and we
 believe this combination will result in tremendous opportunities for
 SafeBoot, our customers, and our employees," said Gerhard Watzinger, chief
 executive officer of SafeBoot. "As we combine McAfee's resources and
 SafeBoot's technology and capabilities, we will be even better equipped to
 help our customers address the complex challenges of managing their data
 security, and position both companies to capture new opportunities in our
 rapidly growing markets."
     "We're delighted that Gerhard and his team will be joining McAfee and
 we believe that the talent and know-how of SafeBoot's employees will play
 an important role in our future success," said DeWalt. "The new product
 business unit will build on both companies' data protection offerings,
 helping us integrate and deliver market leading new solutions for data
 protection."
     The acquisition is expected to close in the fourth quarter of 2007
 pending regulatory reviews.
     Conference Call Information:
 
     -- The Company will host a conference call today at 2:00 p.m. Pacific,
        5:00 p.m. Eastern to discuss the acquisition. Participants should call
        (800) 809-7467 (United States toll-free) (706) 679-4671
        (international).  The conference ID is 20063173.
     -- Attendees should dial-in at least 15 minutes prior to the conference
        call
     -- A replay of the call will be available until October 22 by calling
        (800) 642-1687 (United States toll-free) or (706) 645-9291
        (international).
     For additional information, please reference the acquisition landing
 page at http://www.mcafee.com/us/about/corporate/mcafee_safeboot.html and
 the McAfee Security Insights Blog at http://siblog.McAfee.com/.
     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. http://www.McAfee.com.
     About SafeBoot
     The SafeBoot suite of mobile data protection solutions protects data,
 devices and networks against the risks associated with loss, theft, and
 unauthorized access, anytime and anywhere. SafeBoot provides
 enterprise-class, powerful encryption and strong access control
 technologies that seamlessly integrate with existing systems. SafeBoot's
 centralized management capabilities provide organizations with operational
 efficiency and ensure low total cost of ownership. Summit Partners has held
 a majority stake in SafeBoot since 2005. For more information, visit
 http://www.SafeBoot.com.
     Forward-Looking Statements:
     This release contains forward-looking statements, which include those
 regarding McAfee's future plans for the SafeBoot business, the expected
 closing date of the acquisition, the expected financial impact of the
 SafeBoot acquisition on McAfee's non-GAAP earnings, the expectations as to
 the future growth of the SafeBoot business and the overall market for
 worldwide mobile device security, and McAfee's expected plans for the
 integration of SafeBoot products. Factors that could cause McAfee's actual
 results, levels of activity, performance or achievements, including the
 realization of expected financial and other investments of the acquisition,
 to be materially different from those anticipated in this release include
 among others, the inability to integrate successfully SafeBoot within
 McAfee or to realize synergies from such integration; costs related to the
 acquisition of SafeBoot; inability to obtain necessary regulatory approval
 or to obtain them on acceptable terms; the economic environment of the
 industries in which McAfee and SafeBoot operate, as well as facts relating
 to SafeBoot that may impact the timing or amount of synergies they can be
 realized and that are unknown to McAfee. In addition, actual results are
 subject to other risks and uncertainties that relate more broadly to
 McAfee's overall business, including those more fully described in McAfee's
 filings with the SEC including its annual report on Form 10-K for the year
 ended December 31, 2005, and its quarterly report filed on Form 10-Q for
 the first quarter of 2006.
     NOTE: McAfee and ePolicy Orchestrator are registered trademarks of
 McAfee, Inc. and/or its affiliates in the U.S. and/or other countries.
 McAfee Red in connection with security is distinctive of McAfee brand
 products. All other registered and unregistered trademarks herein are the
 sole property of their respective owners. (C) 2007 McAfee, Inc. All rights
 reserved.
 
 

SOURCE McAfee, Inc
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http://www.mcafee.com

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