McAfee Inc, the No. 2 computer security company, plans to team up with EMC Corp to offer online PC backup services, and announced the acquisition of a company that protects ATMs against hackers.
The company plans to offer consumers unlimited Web-based backup for personal computers with EMC Corp's Mozy division for $50 to $60 a year, Executive Vice President Todd Gebhart said at a McAfee's analyst meeting on Friday.
Earlier in the day, McAfee said it would pay $33 million to buy Cupertino, California-based SolidCore Systems Inc, adding products that help companies protect ATMs, cash registers and other point-of-sale systems used by retailers, along with multifunction printers and other specialized computer devices.
It would pay another $14 million if SolidCore's business meets certain financial targets.
SolidCore's products are used by more than 100 financial institutions and in more than 15,000 retail stores, McAfee said.
McAfee Chief Executive Dave DeWalt said he would continue to look to make small- and mid-sized acquisitions of products that the company can cross-sell with existing products.
I think people here would expect three or four more things like SolidCore, said Cowen & Co analyst Walter Pritchard.
McAfee said it expects the acquisition of SolidCore to be slightly dilutive to profit, excluding items, in the current quarter, ending June 30, which is when it expects the deal to close.
The company plans to introduce the PC backup service in the second half of the year, making it a late player into a market dominated by bigger rival Symantec Corp, its partner EMC and privately held Carbonite.
A few years ago McAfee beta tested a backup service that it hoped to launch, but ditched plans to bring that to market.
DeWalt reiterated his comments from a Thursday interview with Reuters, saying that business had improved in May from April. So far, good pace. We are on a roll here, DeWalt said.
Shares in Santa Clara, California-based McAfee rose 27 cents, or 0.7 percent, to $38.30, while the Nasdaq Composite Index was little changed.
(Reporting by Jim Finkle; Editing by Brian Moss, Leslie Gevirtz)