Check Point Software Technologies and Zone Labs Inc. announced Monday that they had signed a definitive merger agreement under which Check Point would acquire privately held Zone Labs for $205 million.

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A lot of consolidation in the security industry lately. Netscreen just bought Neoteris. Check Point was in the hunt there. I guess they decided to broaden their client security offerings/client base since they lost on the Neoteris bid. So we've got Netscreen acquiring an SSL VPN company and Check Point acquiring a personal firewall software company. Is this a tacit acknowledgement that Check Point's existing personal firewall client is lacking?

I say Netscreen is the one to watch. If they get good enterprise management for their devices and they integrate the SSL VPN functionality they just bought under that umbrella, look out.

Overall, this proves two things to me. Security companies are doing very well. And if you have a hot idea that people need, pursue it to be bought by bigger players who for reasons of shareholder accountability cannot be as flexible as you are.

Anyone want to go in and develop the premiere layer 2 firewall with me? :)

Check Point to acquire Zone Labs for $205M