Secure Computing To Acquire N2H2

Executives at Secure Computing said the acquisition will boost the company's market share in the Web filtering space and give it more than 2,000 new customers. Secure Computing, San Jose, Calif., makes SmartFilter Web filtering software in addition to firewall and authentication products.

"By combining the strengths and complimentary aspects of both companies, we will be able to offer customers more features, a wider range of Web filtering platforms and extended URL list capabilities," said Secure Computing President and COO Tim McGurran in a prepared statement.

Seattle-based N2H2 sells its Internet filtering software under the brand names Bess and Sentian.

Under the agreement, Secure Computing will issue 0.0841 shares of its common stock for each outstanding share of N2H2 common stock, or about 1.861 million shares.

The deal, which is subject to the approval of N2H2's shareholders and customary closing conditions, is expected to close during the fourth quarter.