Juniper Networks Acquires SMobile for $70 Million

By Nathan Eddy

Data center and cloud computing networking software specialist Juniper Networks has announced the acquisition of SMobile Systems, a privately held software company specializing in smartphone and tablet security solutions for the enterprise, service provider and consumer markets, for the sum of approximately $70 million in cash.

Juniper did not disclose how the two companies will integrate their respective work forces.

SMobile's products protect devices running on Android, Apple iOS (which powers iPhones and iPads), Symbian, BlackBerry and Windows Mobile operating systems from viruses, spyware, identity theft and other threats, while providing parental and enterprise controls. Juniper said it plans to integrate SMobile's product portfolio into Junos Pulse, a software platform that brings connectivity, security and acceleration to smartphones, tablets, netbooks and notebooks.

Mark Bauhaus, Juniper's executive vice president and general manager of services layer technologies, said security breaches in today's mobile environment are growing threats that impact everyone. "Juniper already secures the majority of smartphone traffic in the United States, is a global leader in high-end firewalls and the SSL VPN market, and enables more than 25 million end users to remotely and securely connect their PCs and smartphones to corporate networks," he said.

The acquisition fits into Juniper's strategy to boost software selling and encourage development of the company's Junos platform for the mobile client security market. A recent report by industry analyst firm Infonetics Research found the mobile client security market is projected to grow to more than $1 billion by 2014. "Integrating SMobile's portfolio into Junos Pulse will provide users with the most comprehensive mobile security solution available on the market," Bauhaus said.

"The SMobile mission has always been to secure, manage and control all mobile devices, ensuring the Internet in your hand is safe and reliable—for enterprises, consumers and service providers," said Neil Book, president and CEO of SMobile. "We are excited and energized about the opportunity to leverage Juniper's world-class organization and global sales channel to continue to provide the most feature-rich and robust mobile security solutions in the market."

Last week, Juniper released preliminary second-quarter results for the year, reporting net revenues for Q2 2010 increasing 24 percent on a year-over-year basis to $978.3 million and generating net cash from operations for Q2 2010 of $221.3 million, compared with net cash provided by operations of $88.5 million (after litigation settlement payments of $169.3 million) in the first quarter of 2010. Capital expenditures, as well as depreciation and amortization expense during Q2 2010, were $45.4 million and $37.5 million, respectively.

This article was originally published on 2010-07-28