Network Associates attempt to acquire all the shares of McAfee.com that it doesn’t already own looks to back on track after the company upped its offer by 15.6%. Network Associates currently owns approximately 75% of McAfee.com, and was facing resistance to its original bid from a special committee formed by the board of McAfee, that described the original offer as “financially inadequate.”
Network Associates spun off McAfee in 1999, raising about $75 million. McAfee.com has recommended its shareholders accept the new offer.
Network Associates originally offered 0.675 of a Network Associates share for each McAfee share, but has now upped the offer to 0.78 of a Network Associates share for every McAfee share. McAfee.com has recommended its shareholders accept the new offer.
Meanwhile McAfee.com has announced operating results for the fiscal first quarter 2002. Revenue for the quarter was $18.8 million, up $5.9 million from the same period last year. Pro-forma net income for the quarter, excluding a credit related to stock-based compensation, the amortization of intangibles, and charges related to the tender offer, was $3.9 million. Net income for the quarter, including such charges, was $5.5 million.
The growth of our revenues and subscriber base in this economically challenging environment fully demonstrates the power behind subscription services model and the quality of the Web security services we provide, said Srivats Sampath, president and chief executive officer, McAfee.com.