LOS GATOS, Calif. -- Network security specialist Hi/fn Inc. here today announced the acquisition of Apptitude, Inc., a San Jose company that provides embedded Internet traffic analysis solutions for developers of network infrastructure devices.
Under the terms of the agreement, approximately 1.2 million shares of Hi/fn common stock and $20 million in cash will be exchanged for all outstanding shares and options of Apptitude. Hi/fn's stock closed today at $35, adding $42 million to the purchase price.
The acquisition will be accounted for as a purchase transaction and is expected to close in the fourth quarter of Hi/fn's fiscal year 2000.
Apptitude's Internet traffic analysis solutions include a wire-speed application recognition technology that provides fully granular, real-time application visibility on enterprise networks, and the industry-leading RMON/RMON2 agent for embedded environments.
Hi/fn will embed Apptitude's products with its integrated compression-encryption hardware aimed at Internet security.