labels: M&A
Sourcefire turns down Barracuda's $206 million higher takeover offer news
26 June 2008

Security software maker and open source innovator Sourcefire Inc yesterday again declined a takeover offer from industry rival Barracuda Networks Inc, now willing to pay $8.25 per share, or about $206.2 million. Earlier Sourcefire had rejected a $7.50 per share takeover offer from Barracuda as being too low.

Joseph Chinnici, chairman, Sourcefire, said the new offer "substantially undervalues the company," in a letter to Barracuda's president and chief executive officer Dean Drako.

Analysts say that the earlier offer amounted to 1.2 times projected 2008 revenues.

Creator of SNORT said that its board, with the assistance of its advisors, had carefully reviewed privately-held Barracuda's 9 June 2008 letter and unanimously concluded that this most recent indication of interest is not in the best interests of Sourcefire and its stockholders.

''Sourcefire is uniquely positioned to drive the future of network security,'' said Chinnici.''Our incoming CEO John Burris is a leader who possesses the skills and experience to build on Sourcefire's strong momentum, strengthen our position as an industry-leading enterprise security company and continue to deliver value for our shareholders.''


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Sourcefire turns down Barracuda's $206 million higher takeover offer