SUNNYVALE, Calif. -- NetScreen Technologies Inc. today announced that it has signed a definitive agreement to acquire OneSecure Inc., developers of an innovative intrusion prevention and detection solution, for approximately $40.3 million in NetScreen stock and the assumption of OneSecure's outstanding options. Under the terms of the transaction, NetScreen also retains the option to substitute cash for a portion of the stock consideration. Upon close, the acquisition will immediately expand NetScreen's product portfolio to include an intrusion prevention appliance that enables customers to enhance network security and allow NetScreen to enter the intrusion detection system (IDS) market, which International Data Corp. estimates will reach nearly $1 billion by 2005. To drive the pervasive deployment of intrusion prevention, NetScreen intends to integrate OneSecure's innovative technology into NetScreen's existing security appliances and systems and security management software. "The acquisition is a major milestone in our plan to incorporate additional innovative security technologies into our existing products and to offer our customers comprehensive intrusion prevention solutions," said Robert Thomas, president and CEO of NetScreen. "We looked at more than a dozen companies in the intrusion detection and prevention markets. After extensive analysis, we determined that OneSecure had the best fit of products, people and technology to enable NetScreen to drive the transition from intrusion detection to intrusion prevention." OneSecure's Intrusion Detection and Prevention (IDP) system combines intrusion prevention as well as detection in a single appliance with sophisticated management capabilities. OneSecure's unique Multi-Method Detection integrates eight detection mechanisms, substantially more than other IDS vendors, providing the capabilities of several separate products in a single platform. Also unlike first-generation IDS products, OneSecure's solution is designed to run "in-line" in a network to provide active blocking of attacks. "Intrusion prevention technology is required to protect networks from increasingly common application level attacks," said Nir Zuk, co-founder and chief technical officer at OneSecure. Zuk will assume the newly created position of CTO at NetScreen upon completion of the acquisition. "Together with NetScreen we plan to deliver a new breed of purpose-built, integrated network security gateway devices that combine the best-of-breed firewall, VPN, intrusion prevention and detection and other security functions." NetScreen Technologies Inc. OneSecure Inc.