Sourcefire Declines Barracuda Networks OfferBy Brian Prince | Posted 2008-05-31 Email Print
Sourcefire says Barracuda Networks' asking price is too low for shareholders.
Officials at Sourcefire turned down an unsolicited acquisition attempt by Barracuda Networks May 30, calling the bid too low.
Barracuda, which makes e-mail and Web security appliances, proposed to acquire all outstanding shares of common stock for $7.50 per share in cash, a 13 percent premium above the company's May 23 closing price. The price also represented a 34 percent premium over the enterprise value as of May 23, and 16 percent over the average trading stock price during the past 60 trading days.
In a press statement, Barracuda CEO Dean Drako said the acquisition would reflect his company’s commitment to the open-source community.