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McAfee and Network General merge

By Sandra Gittlen
Network World Fusion

McAfee Associates today announced it is merging with Network General Co. with a stock-for-stock trade valued at more than $1.3 billion.

The new network and security management company, to be called Network Associates, Inc., would become the largest third-party software provider for Wintel PCs and servers, according to McAfee.

The merger will combine McAfee's enterprise security and help desk automation software with Network General's network fault and perfomance management products. "There will be little product overlap," McAfee said.

"In the age of network computing, there is no more significant market than network security and management," said Bill Larson, president, CEO and chairman of McAfee. "This transaction would solidify our position as a leading supplier of the core technologies in this high-growth market."

"There is powerful synergy across our product lines, our markets and our organizations," said Leslie Denend, president and CEO of Network General. "VirusScan and Sniffer are two of the most recognized brands in the network security and management markets. We believe these products, combined with the company's new products, will establish Network Associates as the premier partner for enterprise customers as they evolve to fully leverage the benefits of a secure, reliable network computing architecture."

Under the terms of the transaction, McAfee will offer 0.4167 shares for each share of Network General stock. Both boards have approved the transaction, and the companies plan to complete the merger within 90 days.

Larson will serve as chairman and CEO of Network Associates and Denend will serve as president.