St. Bernard Buys Red Condor Assets
San Diego’s St. Bernard Software, which provides the iPrism network security appliance, said today it has acquired the e-mail security technology and substantially all other assets of Red Condor, a six-year-old startup near Sonoma State University.
St. Bernard (OTCBB: SBSW) says the acquisition of Red Condor’s spam-and-bot filtering technology enhances and expands its security offering, which combines its network security appliances with software and hosted security solutions. The San Diego company says Red Condor’s 34 employees will continue to work in Rohnert Park, CA, giving St. Bernard a presence in Northern California for the first time.
Red Condor CEO Thomas Steding, however, will not continue under St. Bernard’s banner. He has nearly two decades of experience in Internet security, including a stint as founding CEO of Pretty Good Privacy, the company formed around the controversial e-mail encryption software that Philip Zimmerman created in 1991.
St. Bernard did not disclose financial terms of the deal, although a recent filing with securities regulators indicates that Red Condor and some of its lenders got more than 2.4 million restricted common shares of St. Bernard stock, which trades on the over-the-counter bulletin board. Based on today’s close of 35 cents a share, St. Bernard’s offer would be valued at nearly $800,000. However, the transaction was complicated by a related investment in St. Bernard, and a spokeswoman for the company said CEO Lou Ryan was unavailable today to discuss terms of the deal.
St. Bernard says that combining the two companies’ technologies will allow it to offer customers, which range from small Internet Service Providers (ISPs) to large business enterprises, a suite of easy-to-use, cost-effective, and scalable Internet and e-mail security solutions.
As part of the asset acquisition, St. Bernard says it also will get 1,900 new customers as well as Red Condor’s ISP and MSP partner network.
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