RadGuard

is closing down only two weeks after its shareholders provided it with a $6.2 million bridging loan.

Just recently the press reported negotiations to sell RadGuard to

Avaya Communications

, a spinoff from

Lucent Technologies

(NYSE:LU).

RadGuard was founded in 1994. The company developed hardware-based security solutions for virtual private networks, enabling distant users to safely transfer information. The company's main investors are

Intel Capital

, the Japanese funds

JAFCO Ventures

and NIF Ventures,

HarbourVest Partners

, the China Development Investment Bank,

Evergreen Canada Israel Investments

, Tamar Technology Ventures,

Shrem Fudim Kelner

, and the Zisapel brothers Zohar and Yehuda.

The company last raised financing at the end of 1999, securing $15 million at a company value of $60 million. Most of the company's 80 workers will apparently be given new positions in other RAD group firms.

RadGuard has headquarters in Tel Aviv and offices in Mahwah, New Jersey, Bedford, Massachusetts, and San Francisco.