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SCUR Snaps Up CyberGuard

What a difference a year makes. In a bizarre twist to one of last years more protracted M&A negotiations, Secure Computing Corp. (Nasdaq: SCUR) acquired rival security vendor CyberGuard Corp. (Nasdaq: CGFW) on Thursday in a stock transaction valued at around $295 million (see CyberGuard Acquired by Secure ).

The deal follows an unsuccessful attempt by CyberGuard to get its paws on Secure Computing last year (see CyberGuard Locks Onto SCUR).

How times change. CyberGuard’s $300 million bid was in the same ballpark as today’s price, although Secure Computing felt, last year, that the deal was not in the best interests of the company’s shareholders (see SCUR Spurns CyberGuard Suitor)

Yesterday, however, Secure Computing was singing a different tune with CEO John McNulty promising that the deal would be accretive to the company’s earnings two quarters after the transaction closes.

Jon Oltsik, analyst at Enterprise Strategy Group says he's not surprised by this turnaround. “It made sense last year and it makes sense this year,” he says. “They are both firewall companies.”

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