Secure Computing to acquire N2H2

Secure Computing Corp. has signed a merger agreement to acquire N2H2 Inc. for $19.9 million in stock, the company announced today.

Under the agreement, Secure Computing of San Jose, Calif., will issue 0.0841 shares of Secure Computing common stock for each outstanding share of N2H2 common stock, or about 1.861 million shares, the company said.

The acquisition of N2H2 of Seattle, a provider of global Internet content filtering services, will increase Secure Computing's market share and critical mass in the Internet content filtering marketplace, said Tim McGurran, Secure Computing's president and chief operating officer.

The company expects to add more than 2,000 new customers through the deal, he said.

"By combining the strengths and complementary aspects of both companies, we will be able to offer customers more features, a wider range of Web filtering platforms and extended URL list capabilities," he said.

N2H2's software is intended to help customers control, manage and understand their Internet use by filtering Web content, monitoring access and delivering concise reports on user activity. These safeguards enable organizations to limit potential legal liability, increase user productivity and optimize network bandwidth.

Secure Computing is a provider of security technology services to the public and private sectors. The company has more than 360 employees and annual sales of $65.8 million, according to Hoover's Online of Austin, Texas.