Network equipment maker Juniper Networks has acquired
NetScreen Technologies in an all-stock deal worth approximately
$4bn (£2.1bn).
The acquisition will add NetScreen's network security products,
including firewalls and VPN (virtual private network) technology,
to Juniper's portfolio of high-end networking products.
NetScreen's technology will help Juniper better serve its
customers by addressing network security concerns, said Juniper
chief executive officer Scott Kriens.
The deal is expected to close in the second quarter of 2004 and
must be approved by the shareholders of both companies.
The deal presents new opportunities for the combined company to
reach large customers who are the focus of both NetScreen and
Juniper. Netscreen's traditional strength in large enterprises will
mesh well with Juniper's historical focus on internet service
providers, incumbent local exchange carriers and the defence
industry, Kriens said.
The growth of networked devices, from portable digital
assistants to home entertainment systems is blurring the line
between public and private networks.
The future will be less about focusing on specific markets than
about ensuring the quality and security of data sent from source to
destination, he said.
After completion of the acquisition, NetScreen's 900 employees
will join Juniper's staff of 1,600 in a new security products group
under the leadership of NetScreen president and chief executive
officer Robert Thomas.
The initial focus of that group will be on meeting the demands
of NetScreen's existing customers.
Juniper and NetScreen will combine their technologies into
suites of products that combine core IP (Internet Protocol) routing
with security and policy management features, extending the reach
of security products from the network perimeter to the "heart of
the network".
In recent months, NetScreen has been taking steps to increase
the breadth of its security offerings. The company bought Secure
Sockets Layer VPN maker Neoteris in November for $265m in stock and
cash, adding that popular remote access technology to its
portfolio.
Kriens called that acquisition a "spectacular move" and said
that as part of Juniper, NetScreen will continue expanding its
security offerings and focusing on solving complex network security
problems.
Paul Roberts writes for IDG News Service