CyberGuard Corporation Completes Acquisition of Arca Systems, Inc.FORT LAUDERDALE Fort Lauderdale (lô`dərdāl), residential, commercial, and resort city (1990 pop. 149,377), seat of Broward co., SE Fla., on the Atlantic coast; settled around a fort built (c.1837) in the Seminole War, inc. 1911. , Fla.--(BUSINESS WIRE)--June 17, 1998-- Arca Receives First Professional Services Contract with One of CyberGuard's Largest Finance Industry Customers CyberGuard Corporation (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : CYBG) has completed the previously announced acquisition of Arca Systems, Inc., a privately-held information security services firm headquartered in San Jose, California San Jose (IPA: /ˌsænhoʊˈzeɪ/) is the third-largest city in California, and the tenth-largest in the United States. It is the county seat of Santa Clara County. . Arca will be operated as a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of CyberGuard Corporation headed by Bill Wilson, CyberGuard Corporate Vice President and President of the Arca Subsidiary. A Board of Directors has been established for the subsidiary that will initially include Mr. Wilson; Tommy Steele, CyberGuard President; Bill Murray, CyberGuard CFO See Chief Financial Officer. ; Lee Reiswig, CyberGuard Director; Jack Wool, Arca Chief Operating Officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. ; and will be chaired by Robert Carberry, CyberGuard CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . In a related announcement CyberGuard also indicated that Arca has received a contract to provide professional services to one of CyberGuard's largest financial industry customers. This work relates to the overall security assessment of the enterprise network and the deployment of firewalls within the network. "With Arca's professional services offerings as part of CyberGuard's overall portfolio, customers can now be offered the complete security life-cycle of products, systems and services," said Robert L. Carberry, chairman and chief executive officer of CyberGuard Corporation. "We have seen an immediate benefit of this acquisition by extending an existing services contract with one of our largest finance industry customers to include Arca's network security analysis service. Arca will play a key role in driving the growth of CyberGuard's services revenues as well as contribute to the expansion of the e-Commerce and product businesses," added Carberry. Under the agreement, CyberGuard will issue 590,000 shares of its Common Stock to Arca's shareholders in exchange for the entire equity interest in Arca. This brings CyberGuard's total shares outstanding to 9,400,000. The acquisition will be accounted for under the pooling of interests Pooling of Interests An accounting method, used in mergers and acquisitions, where the balance sheet items of the two companies are simply added together. Notes: The opposite of pooling of interests is the purchase acquisition method. method. About CyberGuard CyberGuard Corporation (NASDAQ: CYBG) is a leading provider of enterprise security and electronic commerce solutions to Fortune 1000 companies and governments worldwide. CyberGuard's award winning, industrial-strength firewall and certificate authority products and services protect the integrity of data and applications from hackers and digital thieves. CyberGuard's newly acquired professional services subsidiary, Arca Systems, provides unparalleled security consulting expertise and conducts independent trusted product evaluations on behalf of the US Government's National Security Agency. The company has US headquarters in Ft. Lauderdale, Florida and branch offices worldwide. More information on CyberGuard Corporation can be found at http://www.cyberguard.com and http://www.tradewave.com and http://www.arca.com About Arca Systems Arca Systems is a high-end security integration services firm specializing in practical applications of advanced security technology for information systems. The company provides its clients with the methods, tools, techniques and knowledge to securely process and communicate information. Arca has provided assistance, guidance, planning, methods and training to a wide variety of customers in private industry including Microsoft, Shell Oil, Harvard University, Novell, CheckFree and IBM (International Business Machines Corporation, Armonk, NY, www.ibm.com) The world's largest computer company. IBM's product lines include the S/390 mainframes (zSeries), AS/400 midrange business systems (iSeries), RS/6000 workstations and servers (pSeries), Intel-based servers (xSeries) , and government organizations such as the Internal Revenue Service, NATO NATO: see North Atlantic Treaty Organization. NATO in full North Atlantic Treaty Organization International military alliance created to defend western Europe against a possible Soviet invasion. and the Government of Italy. The company was recently issued one of the first provisional licenses to conduct independent trusted product evaluations on behalf of the U.S. Government's National Security Agency. Arca, founded in 1987, has approximately 40 employees, and has headquarters in San Jose, CA, with facilities in Virginia, Maryland and Massachusetts. More information on Arca can be found at http://www.arca.com Note to Editors: CyberGuard Firewall is a trademark of CyberGuard Corporation. All other trademarks are property of their respective owners. CONTACT: CyberGuard Corporation Lisa Thornhill Press and Investor Relations Investor relations The process by which the corporation communicates with its investors. 954/958-3904 lthornhill@mail.cybg.com or RadCom Strategic Marketing Marianne Radwan 561/988-5300 |
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