Advances Boeing Strategy To Continue Growing Cybersecurity Business

Boeing is continuing to branch out and increase its cybersecurity business, announcing the planned acquisition of a second network traffic and software company in as many weeks.

Tuesday, Boeing  announced an agreement to acquire Narus, a provider of real-time network traffic and analytics software used to protect against cyber attacks and persistent threats aimed at large Internet Protocol networks. The acquisition follows a successful partnership between the two companies and advances Boeing's strategy to offer cybersecurity solutions. Narus employs approximately 150 people globally; its headquarters are in Sunnyvale, CA.

"This acquisition is another step forward in our strategy to develop integrated solutions for better network visibility, threat detection, and cybersecurity," said Roger Krone, president of Boeing Network & Space Systems, a business within the Boeing Defense, Space & Security (BDS) operating unit. "Narus' innovative employees and unique capabilities to secure complex networks will be a significant benefit to Boeing and our customers."

Narus is privately held and the terms of the transaction were not disclosed.

Once acquired, Narus will operate within Boeing's Network & Space Systems business as a wholly owned subsidiary. In addition to supporting cyber activities within Network & Space Systems, Narus' network-centric technology also will be applied to Boeing's smart grid energy work, the secure networking of Boeing's ground, air and space products, and the defense of the Boeing network.

The acquisition is expected to close during the third quarter of 2010.

In a related development, Boeing put forth a cash tender offer to purchase all of the outstanding shares of common stock of Argon ST Inc. through its wholly owned subsidiary, Vortex Merger Sub Inc. on Thursday.  Boeing announced on Wednesday, June 30 that it had entered into a merger agreement with Argon ST, a developer of command, control, communications, computers, combat, intelligence, surveillance, and reconnaissance (C5ISR) systems.

Upon successful completion of the tender offer, shareholders of Argon ST will receive $34.50 in cash for each share of Argon ST common stock validly tendered and not validly withdrawn, without interest and less any required withholding taxes.

The board of directors of Argon ST has unanimously determined that the offer and the other transactions contemplated by the merger agreement are fair to and in the best interests of Argon ST's stockholders, and has recommended that Argon ST's stockholders tender their shares in the offer.

FMI: www.boeing.com