Axent Technologies Inc., Raptor Systems to merge Rockville retains the headquarters

Computer industry

December 02, 1997|By Shanon D. Murray | Shanon D. Murray,SUN STAFF

Axent Technologies Inc. of Rockville said yesterday that it has signed a definitive agreement to merge with Raptor Systems Inc., a Waltham, Mass.-based maker of network security products.

The combined companies will assume the name of Axent Technologies Inc., and provide information security solutions for computer clients and servers. The merged company will be headquartered in Rockville.

Axent specializes in products that protect computer data from being lost or stolen while it is transmitted between a company's headquarters, satellite offices and customers, or from employees with computer access.

Raptor is the number two fire wall company in the country. A fire FTC wall is technology that insulates corporate computer networks from the Internet.

Axent's OmniGuard software, which controls user access and detects network intruders, is highly regarded, as is Raptor's Eagle-brand fire walls, analysts said.

"Both companies were headed in the same direction when it came to product development," said Shaun McConnon, president and chief executive officer of Raptor Systems. "The merger is an act of synergy."

John Becker, president and CEO of Axent, will continue in those positions after the transactions. McConnon will be on the new company's board of directors. Axent employs 225 workers; Raptor has 175.

The merger is valued at about $250 million. Under the terms of the agreement, Axent expects to issue about 12.8 million shares to Raptor stockholders and option holders. The deal is expected to close in March, subject to regulatory reviews.

The merger is ideal, said Pete Privateer, senior vice president of operations at Axent, which was created in 1993.

"Customers are tired of going to a number of vendors and finding that the products are not compatible," Privateer said.

The new company will serve such clients as Motorola Inc., Chase Manhattan Corp., Wells Fargo & Co., Mobil Oil Corp. and MCI Communications Corp. as well as federal agencies.

Pub Date: 12/02/97

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