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10.04.06
McAfee Acquires Citadel
 By
Jason Lee Miller
McAfee, Inc. announced it will acquire all of the assets of Citadel Security Software Inc. for approximately $56 million in cash, plus an estimated $4 million in working capital reimbursement.
Citadel is a security policy compliance and vulnerability remediation company. McAfee will add a suite of products from the acquisition intended to help enterprises neutralize security vulnerabilities and reduce risk.
"Security risk management is emerging as one of our highest-growth opportunities. This acquisition will help us develop the next generation of real-world security risk management solutions that customers are demanding," said Kevin Weiss, president of McAfee.
"With the addition of Citadel, we can offer our customers the major components of vulnerability assessment, policy compliance enforcement and remediation, building on our suite of existing products, including ePolicy Orchestrator, Preventsys, Policy Enforcer and Foundstone."
The company says that highly regulated industries like government and health-care will be the benefactors as McAfee integrates Citadel's automated solutions for compliance with regulatory requirements and internal policies, and by speeding up compliance processes and minimizing threat exposure.
"We see companies struggle to bridge the gap between IT security and operations -- such as tying compliance audits to remediation," said Rose Ryan, analyst at IDC.
"Companies should seek to improve their exposure to risks from vulnerabilities, threats and intrusions while reducing total cost of ownership by leveraging a unified security risk management architecture."
"McAfee has a significant lead in the market with the release of the industry's first truly integrated system security solution for the enterprise with Total Protection solutions.
"We believe we can considerably extend the market for Citadel's solutions by leveraging McAfee's 45 million desktops under management by ePolicy Orchestrator and becoming a key component of McAfee's security risk management portfolio," said Steven Solomon, chairman and chief executive officer at Citadel.
The transaction is expected to close in the fourth quarter of 2006, subject to customary closing conditions including Citadel stockholder approval and expiration of the Hart-Scott-Rodino (HSR) waiting period.
About the Author:
Jason is a graduate of the University of Kentucky. He covers business, technology, and security issues.
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