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Acquisition takes Barracuda into application delivery controller market.

Barracuda Networks : 18 September, 2007  (Company News)
Barracuda Networks acquires NetContinuum enabling an expansion into the market for application firewalls.
Barracuda Networks has completed the acquisition of NetContinuum, the leading provider of Web Application Firewalls. The addition of NetContinuum's award-winning products to Barracuda Networks' product portfolio puts the company in a strong position to expand customer adoption of Application Delivery Controllers (ADC). NetContinuum, whose customer roster includes many Fortune 100 companies, develops solutions that combine Web application security, traffic management and SSL acceleration making it an easy to use solution for protecting Web sites of all sizes.

"NetContinuum is a recognised leader in the ADC market and this acquisition will enable Barracuda Networks to offer easy-to-use appliances that secure Web sites," said Dean Drako, president and CEO of Barracuda Networks. "By combining Barracuda Networks' strengths and sales channel reach with very mature and highly acclaimed NetContinuum products, we are confident that we will deliver industry-leading capabilities to a set of customers who had previously been unable to deploy Web site security solutions."

With more than 50,000 customers worldwide, Barracuda Networks is the global volume leader in integrated network solutions for comprehensive email, Internet, Web and IM protection as well as application server load balancing. Utilising its established worldwide sales channel, spanning 80 countries, Barracuda Networks will introduce the NetContinuum product line to a broader market.

Following the launch of the Barracuda Load Balancer in late 2006, and through feedback from Barracuda Load Balancer customers, Barracuda Networks found major security shortcomings in current Web Application Firewall solutions. In addition, as major credit card companies are increasing pressure on their merchants to comply with the Payment Card Industry Data Security Standard (PCI DSS), many e-commerce businesses are seeking solutions to meet requirement 6.6 of PCI DSS calling for either detailed custom application code reviews or installation of a Web application firewall by June 30, 2008.

"We are finding that a large number of e-commerce providers are not protecting their Web sites, leaving their Web sites vulnerable to attacks that gain unauthorised access, steal customer data, or deface the Web site itself," said Stephen Pao, vice president of product management for Barracuda Networks. "Barracuda Networks is skilled in taking complex technology, making it very straightforward and packaging it in an easy to use appliance for businesses of all sizes."

As part of the acquisition, Barracuda Networks plans to maintain support for NetContinuum's existing products as well as to increase investment in product development in the ADC product category. In addition, the majority of NetContinuum's 75 employees have also joined the Barracuda Networks team. Barracuda Networks will continue to work with all NetContinuum sales channel partners, expanding the depth of its worldwide sales reach, and enabling them to provide better service and support to all existing and future customers. Updata Advisors consulted with NetContinuum on the transaction.

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