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SurfControl rides Chinese wave with $15m acquisition

Fast track to China...

Tags: anti, surfcontrol, virus, spam

By Will Sturgeon

Published: 19 April 2004 13:15 GMT

Web and email filtering company SurfControl has made a move into the lucrative waters of the emerging Chinese market through the $15m acquisition of the assets of Linux-based filtering appliance firm SecureM - namely its MessageSoft brand.

US-based MessageSoft has offices in Beijing and its open-source roots mean it meets with the approval of the Chinese government's non-proprietary software preferences.

While MessageSoft does offer a number of additions to SurfControl's product portfolio, SurfControl is candid about the three main reasons for the acquisition: location, location, location.

All the world's major technology companies have been looking for a route to the Chinese market and acquisition of an established presence tends to offer the most immediate returns.

Steve Purdham, CEO of SurfControl, said: “Our acquisition strategy has always been about 'how can we get further faster' and this acquisition has all the hallmarks required to help us achieve just that."

"The acquisition of the MessageSoft solution with its China-based operations bring critical assets to SurfControl: a scalable Linux-based appliance technology that can be leveraged across our existing solutions and a sales and distribution infrastructure in the increasingly important China market," added Purdham.

The deal breaks down as an up-front cash payment of $9.7m, plus an additional sum of up to $5m depending on sales between April and December 2004.

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