Cyber security solutions provider Fortinet has acquired Meru Networks, a WiFi networking solutions provider.
With the close of this acquisition, Fortinet says it expands on its secure wireless vision and enterprise growth focus, broadens the company's solutions portfolio, and expands its opportunity to address the $5 billion global enterprise WiFi market with secure wireless solutions.
After the completion of the transaction, Meru employees officially join Fortinet.
In connection with the acquisition, Fortinet is paying $1.63 per Meru share in cash, an equity value of approximately $44 million for the transaction.
Fortinet first completed the tender offer for all outstanding shares of Meru by accepting for payment all such shares validly tendered and not properly withdrawn as of the expiration time of the tender offer, which represented approximately 60.18% of Meru's outstanding shares.
Subsequently, a wholly-owned subsidiary of Fortinet merged with and into Meru, resulting in Meru becoming a wholly-owned subsidiary of Fortinet. As a result of the merger, all remaining shares of Meru not purchased by Fortinet in the tender offer (other than shares owned by Meru, Fortinet or their subsidiaries and shares subject to properly exercised appraisal rights claims) were converted into the right to receive the aforementioned cash payment.
All shares of Meru are expected to be delisted from the Nasdaq stock market.
Perry Hutton, regional director at Fortinet, says the acquisition of Meru Networks is synergistic with Fortinet's enterprise focus and secure wireless vision of combining strong network security with ubiquitous connectivity.
He adds the acquisition will see the South African Fortinet team grow further to include the necessary sales as well as technical expertise to continue and grow this portion of the business in the local market.
"Fortinet has a solid track record in the strategic convergence of network security with our FortiGate integrated security appliances and FortiWifi wireless security as well as FortiAP secure wireless access point products for small, mid-sized and distributed enterprises," Hutton says.
He notes the combination of Fortinet and Meru's wireless products (controllers and access points) produce a broader wireless access product portfolio that meets the needs of enterprises of all sizes.
The South African market is no different, he points out. "This acquisition will give Fortinet access to a far broader range of enterprise clients that they could not previously service. This acquisition helps address an important enterprise need, brought about by wireless adoption and BYOD, for secure connectivity."
According to Hutton, Meru's product portfolio and 14 000 customers provide lucrative cross-selling opportunities for Fortinet.
He notes SA is a well-established Meru market with many installation as well as business opportunities.
"Meru broadens our solutions set and enables and sales opportunities in larger enterprise campus and regional networks with thousands of access points per location and in key verticals such as education, healthcare and hospitality."
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