Security technology firm McAfee Inc. has agreed to acquire ScanAlert Inc., provider of the Hacker Safe seal that certifies the security of e-commerce sites. More than 60% of the 500 largest online retail sites as identified by Internet Retailer display the Hacker Safe seal, McAfee says.
McAfee will pay approximately $51 million in cash and up to $24 million more if performance targets are met. Privately held ScanAlert is expected to generate $15 million to $20 million in revenue this year, McAfee says. The deal is expected to close in the first quarter of 2008.
Through this acquisition, we will enhance McAfee’s triple play protection-securing consumers on the PC, web and mobile platforms-by integrating ScanAlert’s e-commerce security certification service into our SiteAdvisor Web rating system, says Dave DeWalt, CEO and president of McAfee. This will create the industry’s only service that helps consumers stay safe as they search, surf and now shop.
ScanAlert pioneered vulnerability assessment and certification for e-commerce sites to help eliminate one of the greatest risks to consumers’ financial information, says Ken Leonard, CEO of ScanAlert. By becoming part of McAfee, we believe ScanAlert can extend web certification to the next level, greatly benefiting consumers and the businesses who serve them.
ScanAlert audits and certifies the security of 8,000 clients with 75,000 web sites that account for more than 15 million e-commerce transactions a month, the company says. ScanAlert scans sites for vulnerabilities and verifies security fixes, with the aim of ensuring that financial data provided by consumers to e-commerce sites is protected.
ScanAlert, based in Napa, CA, will become part of McAfee’s Web Security Group, which will be led by ScanAlert’s Leonard and by Tim Dowling, a vice president in McAfee’s consumer, mobile and small business unit.
Based in Santa Clara, CA, McAfee provides online security services to consumers, businesses and government agencies. The company reported preliminary third quarter revenue of $322 million, up 12% from the same period a year ago, and net income of $62.9 million, 108% more than the year-ago period.