Tumbleweed acquires Valicert

Security solutions provider Tumbleweed Communications Corp., Redwood City, Calif., completed its acquisition of Valicert Inc. of Mountain View, Calif.

The sale is estimated to be valued at $14.3 million. Under terms of the deal, each Valicert share of common stock was converted into 0.385 of a share of Tumbleweed stock.

Tumbleweed sells firewalls, spam filters and message encryption solutions. Tumbleweed's government customers include the Food and Drug Administration, the Marine Corps, the Navy and the Postal Service. For 2002, it reported $25.5 million in revenue and a $20.9 million loss, according to Hoover's Online of Austin, Texas. It employs about 130 people.

Valicert sold authentication software for file transfers. Its government customers included the state of Washington and agencies within the Defense Department. For 2002, the company reported $12.2 in revenue, with a net loss of $21.7 million.