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March 31, 2006

We're not the only ones

The squashing of the Checkpoint-Sourcefire deal by US government pressure is not the only security deal that may go south due to government pressure.  This time it is not even the US government involved.  Mike Rothman, at Security Incite reports, that it seems our good friends over in the UK have decided to take a closer look at the SafeNet and nCipher deal. According to the SafeNet press release, pursuant to the terms of the deal, SafeNets offer for the shares of nCipher have lapsed. SafeNet is considering its options in light of this closer review and the deal certainly seems at best in doubt.  Does this spell the end of cross-country security acquisitions?  I hate to say it, but if I were buying a foreign security company at this point, I would not be to confident.  This could have a real chilling effect on consolidation in the security market and could have repercussions on the over all climate for international business.  Isolationism at its worst.  Of course I am sure the UK and US governments will call foul and protectionism if some other country refuses to allow a company based in the UK or US to do business in their country.  I think this can only end as a bad jam for everyone, I wish more reasonable views would prevail!

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