Fortinet Set to Buy Meru for $44M
Security company Fortinet plans to buy enterprise WiFi company Meru for $44 million, it revealed Wednesday.
Under the terms of the deal, Fortinet Inc. will pay $1.63 per Meru Networks Inc. share in cash, valuing the buyout at around $44 million. The deal is expected to close in the fall. (See Fortinet to Buy Meru Networks for $44M.)
Fortinet says that Meru's enterprise WiFi access points, controllers and SDN-enabled WiFi system software will be complimentary to its 210,000 customers.
"The acquisition of Meru Networks maps to our overall security vision of combining strong network security with ubiquitous connectivity," said Ken Xie, founder, chairman and CEO of Fortinet, in a statement. "We expect this to accelerate our innovation through the delivery of new solutions and services to help enterprises of all sizes deploy, manage and secure wired and wireless networks in a mobile era."
To complement its acquisition, Fortinet has announced the FortiGuard Mobile Security subscription service, which is designed to be used with its security appliances, and will help bolster its Bring Your Own Device (BYOD) story with enterprise customers.
The $44 million valuation could be considered something of a fire sale for the long-time WLAN company: Meru had gathered more than $160 million in funding since its inception in 2002. The Sunnyvale, Calif.-based operation went public in March 2010. (See Meru Networks Raises $30M and Meru Files for IPO.)
For the full year ended December 2014, Meru reported revenue of $90.9 million, Fortinet said in a statement.
In the first quarter of this year, Meru reported revenues of $17.4 million, down 15% year-over-year, and a net loss as of $8 million, about the same as a year earlier.
— Dan Jones, Mobile Editor, Light Reading