Security software company McAfee Inc. said Monday it has agreed to acquire Foundstone Inc. for $86 million in cash, less various adjustments.

Privately-held Foundstone, which is based in Orange County, Calif., provides security software and consulting services.

The company was founded in 1999 and has more than 400 large customers including AT&T Corp., McKesson Corp. and Motorola Inc., as well as government agencies.

McAfee said the combined company will be able to offer a comprehensive product to help protect corporate computer networks.

McAfee expects the deal to close in the next 60 days.

Shares of Santa Clara-based McAfee were at $17.89 in early trading Monday, up 40 cents, or 2.3 percent, on the New York Stock Exchange.


Source : SiliconValley.com