Network Associates Completes Buyout

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Network Associates said Friday that it completed its exchange offer for shares of and now owns 96 percent of the company.

Network Associates, based here, said it expects the merger of the companies to be completed by the close of Nasdaq Friday.

The company, based here, already owned about 75 percent of, a Sunnyvale, Calif.-based provider of online antivirus services that it spun out as a publicly traded company in December 1999.

By merging back into the corporate fold, Network Associates executives said they hoped to eliminate market confusion and streamline sales efforts.

"Over the last three years the team has moved aggressively into the consumer market and driven the evolution of online security and antivirus services," George Samenuk, chairman and CEO of Network Associates, said in a prepared statement.

"Network Associates will build on that success to extend those services more deeply into the consumer, small and home office, small and medium business and service provider markets," he said.

Network Associates originally offered to acquire the remaining shares of in March but delayed the bid after disclosing that the Securities and Exchange Commission was investigating its fiscal 2000 accounting practices. It quickly renewed the bid but delayed it again after finding inaccuracies in its 1999 and 2000 financial reports.

In July, the company again renewed its bid after filing restated financial statements, but the board rejected it as inadequate. Last month, Network Associates sweetened its bid, which a committee accepted.

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