IBM or HP to Buy Radware: Report
TEL AVIV (
) -- Another day, another tech M&A rumor.
The Israeli technology Web site
reports that networking specialist
Radware
(RDWR) - Get Radware Ltd. Report
is in on the block and said talks are already underway with
IBM
(IBM) - Get International Business Machines Corporation Report
and
Hewlett-Packard
.
Citing unnamed sources,
TheStreet Recommends
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 Citrix Systems, Inc. Report
and
F5 Networks
.
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 Cisco Systems, Inc. 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
, but returned to profitability in
. Late last year, Radware also picked up
Nortel's
Alteon switch business and
launched the first new version of the technology in half a decade
.
Radware's stock has risen more than 155% this year, boosted by strong quarterly results, and, more recently, acquisition chatter.
--Written by James Rogers in New York.
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