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Check Point Snaps Up Sourcefire

Check Point Software Technologies Ltd. (Nasdaq: CHKP) has stumped up $225 million for privately held intrusion prevention specialist Sourcefire Inc. And even as Check Point's execs voiced expectations of a 2006 revenue boost from the buy, the company's stock took a hammering, as the firm adjusted its third-quarter revenue forecast.

Speaking on a conference call this morning, Gil Shwed, Check Points CEO, blamed “a relatively slow summer around the world” for lowering Check Point's quarterly expectations from a range of $140-150 million to a range of $140-141.5 million. He added that a few large deals expected to close in the quarter are now expected to close in the fourth quarter.

Check Point shares dropped $2.25 (9.49 percent) today to $21.45.

The vendor, however, is looking to open source security specialist Sourcefire to bolster its future revenues. On today’s call, Check Point execs said they expect a revenue hike of between 6 and 8 percent next year thanks to the deal.

Sourcefire was founded in 2001 by Martin Roesch, leading developer of an open source intrusion technology called Snort, which forms the basis of the firm’s Intrusion Sensor products, an appliance series that analyzes network traffic. Roesch is Sourcefire's CTO.

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