Websense to Buy U.K. Security Firm

IT security company Websense(WBSN) has made a bid to acquire U.K.-based Web security company SurfControl for $400 million in cash.

The transaction is expected to close in about four months.

The deal is expected to be slightly dilutive to Websense's earnings in the first quarter following the close of the transaction and to add at least 20% to earnings in the next 12 months.

"The combination of Websense and SurfControl is expected to benefit customers, partners and shareholders by creating an IT security solutions company with the scale and product offering to compete more effectively with large global security software companies," said Gene Hodges, CEO of Websense in a press release.

The transaction will help the combined companies save about $10 million in the first quarter after the transaction closes and at least $60 million in the next 12-month period, said Websense.

At close of the deal, or shortly thereafter, Websense expects to have debt of approximately $180 million to $200 million and cash and marketable securities totaling approximately $50 million.

Shares of Websense were recently off 42 cents, or 1.8%, to $22.85 in after-hours trading.

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