Websense has announced that its subsidiary, Websense SC Operations Limited, has made a pre-conditional cash offer to acquire all of the issued and to-be-issued ordinary shares (excluding treasury shares) of SurfControl PLC, a provider of on-demand and software-based web and email security solutions.
Under the terms of the proposal, SurfControl shareholders will receive 700 pence in cash for each SurfControl share. The proposal values SurfControl's existing issued share capital at approximately US$400 million.
Gene Hodges, CEO, Websense said, "By improving operational efficiencies, we believe we can generate operating margins in the combined business. A further objective of the acquisition is to complement and accelerate our stated growth initiatives, particularly in the strategically important SMB segment."
Future estimates assume some customer attrition, which is anticipated to be partially offset by sales of SurfControl products to Websense customers and vice versa.
The opportunities for additional sales include selling SurfControl on-demand web and email security, and layered email security products to Websense customers, as well as selling Websense web security and information leak prevention products to SurfControl customers.
The deal is expected to close approximately four months following regulatory approval by United States and United Kingdom agencies.
The transaction is being financed through a combination of Websense's existing cash resources, and non-equity new banking facilities provided by Bank of America and Morgan Stanley Senior Funding Inc.
Prior to the closing of the transaction, Websense and SurfControl will operate as separate businesses.
