WatchGuard Technologies, a maker of Internet security products, said Thursday it plans to acquire RapidStream, a provider of ASIC-based firewall and VPN appliances for about $48 million in cash and stock.
WatchGuard executives said the acquisition, which is expected to close early in the second quarter, would allow the Seattle-based company to expand its market reach with a broader range of products. RapidStream is a privately held company in San Jose, Calif.
"The acquisition of RapidStream represents a great combination of talented people, advanced ASIC technology and a family of high-performance systems that will strengthen our position in the SME [small- and midsize-enterprise market," said Jim Cady, WatchGuard president and CEO, in a prepared statement.
Under the agreement, WatchGuard will acquire RapidStream through a combination of about $17 million in cash and about $31 million in stock and options. The deal is subject to certain regulatory conditions.