Connect with us

Hi, what are you looking for?



Blue Coat to Acquire Network Security Firm Crossbeam Systems

Blue Coat Systems on Monday announced its plans to acquire Crossbeam Systems to expand its security and network optimization portfolio.

Blue Coat Systems on Monday announced its plans to acquire Crossbeam Systems to expand its security and network optimization portfolio.

The Blue Coat-Crossbeam combination would bring “complementary” technologies into a unified portfolio to scale and secure the world’s largest and most complex networks, David Murphy, BlueCoat’s president, told SecurityWeek.

Blue Coat customers who use the Unified Security product line for Web security would be able to look at Crossbeam’s platform to protect inline security and intrusion prevention. Customers are interested in products that work adjacent to each other, and are not necessarily looking for a single box to handle all aspects of security, Murphy said.

Financial terms of the deal were not disclosed. The acquisition is expected to close Dec. 31, the company said.

Private equity firm Thoma Bravo acquired Blue Coat back in February for $1.3 billion and bought Crossbeam for an undisclosed sum in November.

Blue Coat sells Web security and WAN optimization software on a series of appliances. Crossbeam’s X-series is an open, high-performance architecture that integrates network processing with application processing to create a high-performance, virtualized security infrastructure. Customers can use Crossbeam technology to run unified threat management platforms, firewalls, and intrusion detection systems/intrusion prevention systems from vendors such as Check Point, McAfee, Sourcefire, and Imperva.

The companies have significant overlap in customers, service providers, and channel partners, Murphy said. The two companies have not formally worked together as partners, but “meet regularly in the channel,” Murphy said. A significant number of customers use Blue Coat appliances and Crossbeam application blades. Murphy said there will be plenty of cross-sell and upsell opportunities after the acquisition.

Advertisement. Scroll to continue reading.

Blue Coat expects the acquisition to bring in additional people and grow the company, Murphy said. There are approximately 150 employees at Crossbream, and Murphy said the vast majority of the divisions, such as R&D and field operations, will remain intact. Both companies have strong channel-partner ecosystem, so the focus will be on creating a single account structure to handle all the sales teams with a “single point of focus,” Murphy said. Some consolidation in the back offices is expected, however.

Headquartered in Boxborough, Mass., Crossbeam has offices in the United States, Europe, Latin America, and Asia. Where it makes sense, the offices will be integrated, such as combining the two London offices, Murphy said. Blue Coat plans to keep Crossbeam’s Boxborough location. The Boston-area will become the “fourth sector” for Blue Coat, which currently has centers in Sunnyvale, Calif., Draper, UT, and Waterloo, Ontario, Canada.

No decision has been made regarding how products will be rebranded after the acquisition, Murphy said.

Thoma Bravo currently manages a series of private equity funds representing almost $4 billion of equity commitments, including several investments in security-related tech firms over the past few years.

The private equity firm announced its plans to acquire privately-held TripWire in May 2011, and was also the leader of an investor group that acquired SonicWALL in June 2010 in a transaction valued at approximately $717 million. SonicWALL was later sold to Dell for an undisclosed sum.

Written By

Click to comment

Daily Briefing Newsletter

Subscribe to the SecurityWeek Email Briefing to stay informed on the latest threats, trends, and technology, along with insightful columns from industry experts.

SecurityWeek’s Threat Detection and Incident Response Summit brings together security practitioners from around the world to share war stories on breaches, APT attacks and threat intelligence.


Securityweek’s CISO Forum will address issues and challenges that are top of mind for today’s security leaders and what the future looks like as chief defenders of the enterprise.


Expert Insights

Related Content

Application Security

Cycode, a startup that provides solutions for protecting software source code, emerged from stealth mode on Tuesday with $4.6 million in seed funding.

Cybersecurity Funding

SecurityWeek investigates how political/economic conditions will affect venture capital funding for cybersecurity firms during 2023.

Identity & Access

Zero trust is not a replacement for identity and access management (IAM), but is the extension of IAM principles from people to everyone and...

CISO Strategy

SecurityWeek spoke with more than 300 cybersecurity experts to see what is bubbling beneath the surface, and examine how those evolving threats will present...

Management & Strategy

SecurityWeek examines how a layoff-induced influx of experienced professionals into the job seeker market is affecting or might affect, the skills gap and recruitment...

CISO Conversations

In this issue of CISO Conversations we talk to two CISOs about solving the CISO/CIO conflict by combining the roles under one person.


Thirty-five cybersecurity-related M&A deals were announced in February 2023

CISO Strategy

Security professionals understand the need for resilience in their company’s security posture, but often fail to build their own psychological resilience to stress.