This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Websense Surges On Acquisition Rumor

SAN DIEGO ( TheStreet) -- Shares of Websense (WBSN) surged Wednesday after the Wall Street Journal reported that the security specialist may be on the block.

Citing people familiar with the matter, the Journal said that Websense is exploring a sale with the help of investment bank Qatalyst Partners, which also worked on HP's (HPQ - Get Report) acquisition of Palm and EMC's (EMC) purchase of Data Domain.

Websense could command a price tag of around $1 billion, according to the sources, who explained that the firm may decide against a sale if offers do not meet its expectations.

Websense shares climbed $2.42, or 11.85%, to close at $22.85 on Wednesday, reversing the broader retreat in tech stocks that saw the Nasdaq lose 1.89% over the session.

Rumors of Websense as an attractive acquisition target are not new, and a deal would continue the recent spate of security M&A that saw Intel (INTC) spend $7.7 billion on McAfee and HP grab ArcSight for $1.7 billion.

HP, which rolled out its long-term strategy earlier this week, has been touted as a possible WebSense suitor. The tech bellwether is expected to make more acquisitions in both software and security, particularly after HP CEO Leo Apotheker highlighted the security challenges of cloud computing during an event in San Francisco earlier this week.

Websense, which has a market cap of $928 million, sells software for securing Web, email, mobile and social networking data. The Symantec (SYMC) rival lists Microsoft (MSFT) as a partner.

Neither Websense nor Qatalyst has yet responded to TheStreet's request for comment on this story.

--Written by James Rogers in New York.

>To follow the writer on Twitter, go to

>To submit a news tip, send an email to:

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
WBSN $24.72 0.04%
HPQ $11.60 -0.94%
AAPL $94.28 -0.95%
FB $118.12 0.59%
GOOG $697.13 0.69%


Chart of I:DJI
DOW 17,668.69 -82.22 -0.46%
S&P 500 2,051.97 -11.40 -0.55%
NASDAQ 4,728.9080 -34.3160 -0.72%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs