More security industry consolidation

The continued consolidation in the security industry, spearheaded by the likes of Symantec, has seen two smaller names in the game become the latest to merge, with Secure Computing snapping up CipherTrust for $273m.

The deal comprises $185m in cash as well as 10 million shares of Secure Computing stock and a $10m consideration against future performance.

To date CipherTrust is probably best known in the industry for its litigation rather than its technology, having fought rivals CyberTrust and IronPort over claims of trademark infringement. However, the company also offers a messaging security solution.

Secure Computing CEO John McNulty said the move allows his company to continue to make strides in the enterprise gateway security market.

McNulty expects CipherTrust to contribute around $80m in revenue next year.

The deal is expected to close in September.