“Cobalt Networks, Inc. (Nasdaq: COBT), a leading provider of
server appliances, today announced that it has signed a
definitive agreement to acquire Progressive Systems, Inc., a
privately held company that makes network firewall solutions and
appliances.”
“Cobalt Networks will acquire all outstanding stock and rights
to acquire capital stock of Progressive Systems, Inc. in exchange
for a combination of Cobalt common stock and cash of $11.0 million.
Cobalt expects to account for the transaction as a purchase. Cobalt
expects the deal to close in the third quarter, subject to
customary closing conditions.”
“As Web oriented commerce continues to surge upward, the demand
for higher levels of security will increase,” said Stephen DeWitt,
president and CEO of Cobalt Network. “Adding Progressive’s security
technology to Cobalt’s appliances will enable Cobalt to deliver
enhanced security on its easy to use server appliances. This
acquisition is yet another example of how Cobalt is addressing
customer needs by incorporating applications, network services, and
tools into one reliable, low-cost solution.”