Check Point To Acquire Zone Labs

Check Point intends to pay $113 million in cash and $92 million in shares. The boards of both companies have approved the acquisition, which is expected to close by first-quarter 2004 with Zone Labs operating as a division of Check Point.

Zone Labs, known for ZoneAlarm Pro, a PC firewall, and Integrity, an enterprise endpoint security solution, has an existing alliance with Check Point. Both companies have formal partner programs and are heavily focused on the channel.

Check Point is acquiring San Francisco-based Zone Labs' endpoint security solutions to strengthen its perimeter, internal and Web security solutions, said the company.

Check Point, Redwood City, Calif., also gains 200 Zone Labs employees and 25 million worldwide customers.

"We believe Zone Labs has the very best endpoint security solutions for both consumers and enterprises through the ZoneAlarm and Integrity product lines," said Gil Shwed, chairman and CEO of Check Point, in a statement. "These complement Check Point's vision and our SecureClient VPN/security client solution."

Many industry executives are predicting further consolidation in the security space. Symantec, for one, has been on a buying binge since July 2002, acquiring six security companies by October of this year.