Web security software company Websense Inc. announced a definitive agreement to acquire Palo Alto-based PortAuthority Technologies Inc. for approximately $90 million in cash. The companies made the announcement Dec. 20.
Stockholders of PortAuthority approved the acquisition, which is proposed to be carried out as a merger between a Websense subsidiary and PortAuthority. The merger is expected to close in January.
Websense will assume the assets and liabilities of PortAuthority, including $5 million in working capital and $4 million in debt. The transaction is expected to be dilutive to Websense in 2007 and slightly accretive in 2008.
PortAuthority’s technology allows organizations to manage how confidential data is permitted to leave an organization and under what circumstances.
San Diego-based Websense is traded on the Nasdaq as WBSN and closed Dec. 19 at $24.21, down 15 cents from the Dec. 18 close.
, Andy Killion