IBM or HP to Buy Radware: Report

Radware is on the block. Talks are underway with IBM and HP, according to reports.

Author:
James Rogers
Publish date:
Sep 14, 2010 4:49 PM EDT

Radware is on the block. Talks are underway with IBM and HP, according to reports.

TEL AVIV (

TheStreet

) -- Another day, another tech M&A rumor.

The Israeli technology Web site

Globes

reports that networking specialist

Radware

(RDWR) - Get Free Report

is in on the block and said talks are already underway with

IBM

(IBM) - Get Free Report

and

Hewlett-Packard

(HPQ) - Get Free Report

Citing unnamed sources,

Globes

said that the total value of the deal is expected to be $945 million, or $45 a share, representing a 60% premium.

Shares of

Radware

shot up on Tuesday as investors responded to the M&A chatter. Radware's stock closed up $10.72, or 38.46%, to reach $38.59.

IBM has not yet responded to

TheStreet's

request for comment on this story. A Radware spokeswoman said that the networking firm does not comment on "rumors and speculation" and an HP spokeswoman also declined to comment.

Radware makes application delivery and network security products, and is one of a number of firms touting technology for

tackling potentially debilitating cyber attacks

. Competitors include Cisco,

Citrix

(CTXS) - Get Free Report

and

F5 Networks

(FFIV) - Get Free Report

The Israeli firm, with its U.S. headquarters in Mahwah, N.J., would certainly make a viable acquisition target, particularly for HP. The tech giant, which is locked in a battle with networking giant

Cisco

(CSCO) - Get Free Report

, is on an M&A tear and recently snapped up

3Par

(PARS)

and

ArcSight

(ARST)

for a combined total of almost $4 billion.

IBM would make a less obvious suitor for Radware, although, like HP, the tech bellwether is an existing Radware partner.

Like many tech companies, Radware had to

weather a tough economic climate during the recession