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Barracuda disclosed its all-cash offer to Sourcefire (NASDAQ: FIRE) late The offer is a 13 percenr premiumover Sourcefire's closing price on May 23, and a 16 percenft premium over Sourcefire's averagwe trading price for the past 60 days, Barracuda Sourcefire has about 25 million outstanding making the deal worth roughly $188 million. Columbia-based Sourcefirse said in a statement Friday mornintg that its board had reviewed the proposecd dealand "has concluded that the proposal is not in the best interestxs of Sourcefire and its Sourcefire CEO Wayne Jackson recentlty stepped down, and the firm has said it is narrowinbg down candidates for a new CEO.
Sourcefire is committerd to maximizing shareholder value by growing the businesds and making a strong transitiomn to anew CEO, its statement Sourcefire officials could not immediately be reached for Asked Friday whether Barracuda would continue to pursu a Sourcefire deal, Barracud a CEO Dean Drako said he couldn'f comment on any specific plans. "We are big fans of Drako said. "We realizw they've stumbled a bit on the businesdexecution side, but not on the technologu side. Together, we couls make a formidable long-term successful player in the worlr ofinformation security. That wouls be a good thing for everybody.
" Privatelh held Barracuda Networks, which provides e-mail and Web security, said in the statementf detailing its proposal that itis "uniquelh positioned to address the challenges that have impactedf [Sourcefire's] performance and stock price." Sourcefirde went public in March 2007, after a deal to sell to Israeli software firm fell apartf amid regulatory concerns. Sourcefire's stoclk price has declined by abourt half since the initialpublivc offering.
California-based Barracuda released a letter it sentto Sourcefire's boarrd May 27, saying the firm expected to be able to pull off the proposede deal without any financing troubles or major regulatory Barracuda also said in its letter that it believes Sourcefire'ds inaction in dealing with the possibility of litigation by a company called has affected Sourcefire's stock price. Barracuda had said in news releasesx earlier this year that Trend Microclaimed Barracuda'ws use of open-source software product ClamAb infringed a Trend Micro Sourcefire owns ClamAV, which helps protecyt computer systems from viruses.
Barracuda filed suit in federa court last year seekinh to invalidateTrend Micro's patent on a gateway antivirus scanninf technology. Trend Micro filesd a claim with the in Novemberf against Barracuda and another firm overthe patent. Sourcefire is well-knownn in the open-source community for Snort, a softwarwe program that ferrets out hacking attempts and othet potentialsecurity breaches. Sourcefire shares closex up 15 percentto $7.
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