CUPERTINO, Calif. - Sept. 5, 2001 - Symantec Corp. (NASDAQ:SYMC), a world leader in Internet security technology, today announced that it has signed a definitive agreement for PassGo Technologies, Ltd. to license on an exclusive basis Symantec's Web access control solutions and services. Under the terms of the employee buyout agreement, PassGo will acquire an exclusive license for Symantec's Defender, Webthority, PassGo, Privilege Manager for Unix (UPM) and Resource Manager for Unix (URM) with an option to purchase the products at the end of the license term for an aggregate purchase price, including quarterly royalties, estimated to total $19 million.
"Transferring our Web access control solutions and services to PassGo will allow Symantec to focus its efforts on the products and activities that best leverage the company's core competency in Internet security," said John W. Thompson, Symantec chairman, president and CEO. "PassGo is well-equipped both in terms of technology and personnel to continue providing excellent service to our existing customer base for Web access control solutions and services which cover a multitude of environments such as Windows 2000, Unix and IBM's mainframe platform S/390."
Under the agreement, Symantec will work with the new management of PassGo during a 60-day transition period to help ensure PassGo's success and a smooth transition for the existing customers who use the Web access management solutions. Symantec will provide finance, information technology, manufacturing and sales support during the transition period, which began on Aug. 27, 2001 and will end Oct. 27, 2001. In addition, Symantec and PassGo will work with the existing customers and partners to establish a migration plan. Beginning Oct. 28, 2001, PassGo will be an autonomous company and will take sole responsibility for the development, product management, marketing and support for all Web access management solutions and customers. Following the transition period, Symantec will forward all Web access management sales opportunities to PassGo.
Former Symantec vice president of engineering John Rainford will serve as CEO of PassGo. Rainford was responsible for worldwide support and engineering at the original PassGo before it was acquired by AXENT in March 1999. Since Symantec's acquisition of AXENT in Dec. 2000, Rainford and his team have been responsible for the development and support of Symantec's Web access management product line. The original management team of John Rainford, Philip Cook, Ed Blunt, John Baker and Sandra McEwen that led PassGo before the acquisition by AXENT will lead the company in its new form. Overall, PassGo's leadership has more than 18 years' experience with developing, implementing and supporting access control solutions.
"Our top priority throughout the transfer process will be, as always, to ensure that our customers are well taken care of and will continue to receive the same quality service they received from Symantec," said John Rainford, CEO of PassGo. "We have a strong team that has extensive experience in the Web access management space and are in a strong position to continue delivering innovative, industry-leading products and services to customers throughout the world."
As part of the agreement, PassGo's headquarters will be established by acquiring Symantec's facilities in Horton, England, which have housed Symantec's Web access control solutions development, technical support and services. Further information about PassGo can be accessed through the company's Web site, www.passgo.com.
Symantec, a world leader in Internet security technology, provides a broad range of content and network security solutions to individuals and enterprises. The company is a leading provider of virus protection, firewall and virtual private network, vulnerability management, intrusion detection, Internet content and e-mail filtering, remote management technologies and security services to enterprises around the world. Symantec's Norton brand of consumer security products leads the market in worldwide retail sales and industry awards. Headquartered in Cupertino, Calif., Symantec has worldwide operations in 37 countries. For more information, please visit www.symantec.com.
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