Barracuda Networks wants to acquire Sourcefire for $7.50 per share

By Lisa Kerner

Charlotte, N.C., May 29 - Barracuda Networks Inc. proposed buying Sourcefire Inc. for $7.50 per share in cash, a 16% premium over the average trading stock price for Sourcefire over the last 60 trading days.

In an open letter to the Sourcefire board of directors, Barracuda said the offer is not contingent on financing but is conditioned on satisfactory completion of a due diligence investigation, which the company plans to "expeditiously" complete.

"We hope to work together with Sourcefire and its board of directors to negotiate a mutually beneficial agreement for our respective stakeholders," Barracuda president and chief executive officer Dean Drako said in a company news release.

Drako said Barracuda is "uniquely positioned" to address and remedy execution challenges" faced by Sourcefire management as well as threatened litigation from Trend Micro.

Barracuda Networks is a Campbell, Calif., provider of email and web security appliances.

Sourcefire, based in Columbia, Md., provides enterprise threat management solutions for information technology infrastructures.

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