Commtouch Software Ltd. (Nasdaq: CTCH; TASE: CTCH) has acquired the assets, products, licenses, and operations of the Command antivirus division of Authentium, Inc for $4.6 million in cash. Commtouch will make additional payments, subject to the acquired unit meeting revenue milestones through the end of 2011, which could bring the total price to $8 million.
Commtouch will finance the acquisition from its own resources. The company had $16 million in cash and no debt at the end of June.
The Command antivirus division currently provides its technology to leading service providers and vendors, including Google Inc. (Nasdaq: GOOG), McAfee Inc. (NYSE: MFE), and Microsoft Corporation (Nasdaq: MSFT). The technology is certified by Checkmark, West Coast Labs, and has won multiple Virus Bulletin awards.
Command antivirus includes technology to protect against spyware, Trojan downloaders, and other threats and is strongly synergetic with the rest of Commtouch's product portfolio. Commtouch said that the addition of the antivirus technology as a new, third product line, will enable it to offer a comprehensive set of solutions for inbound and outbound messaging and Web security to its customers, which are networking and security vendors and service providers.
Commtouch expects the acquisition to begin contributing to its non-GAAP revenue and profits in 2011. The company added that the acquisition will accelerate its revenue and profit growth.
Commtouch's share price fell 0.9% on Nasdaq yesterday to $3.15, giving a market cap of $75 million. The share price rose 1% by midday on the TASE today to NIS 12.58.
Published by Globes [online], Israel business news - www.globes-online.com - on July 27, 2010
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