Network Associates Changing Name to McAfee
Posted on: Friday, 23 April 2004, 06:00 CDT
SANTA CLARA, Calif. (AP) -- Computer security firm Network Associates Inc. (NET) will sell its network software division and rename itself McAfee Inc. to focus solely on security products and services, the company said Thursday.
The Santa Clara, Calif.-based company said it plans to sell its Sniffer product line to Silver Lake Partners and Texas Pacific Group for $275 million in cash. The two private equity firms intend to form a stand-alone entity named Network General Corp. to continue developing and selling Sniffer, which is network management software.
The division sale will move about 450 to 500 employees to Network General.
After the close of that transaction, expected by early in the third quarter, Network Associates will change its name to McAfee, its line of security and antivirus products that accounts for about three-quarters of its sales.
Network Associates also said it plans to reduce costs and increase profits to hit a 25 percent operating margin by mid-2005.
"This company is engaged in the most aggressive and important transformation in its history," said George Samenuk, Network Associates' chairman and chief executive.
The company expects to report net earnings of 32 cents a share on revenue of $217 million when it announces first-quarter results Tuesday.
The Sniffer sale will reduce the company's revenues by about $200 million this year.
Network Associates shares closed Thursday up 56 cents, or almost 3 percent, at $19.75 on the New York Stock Exchange.
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