Redwood City's Check Point Calls Off $225 Million Acquisition of Sourcefire

Redwood City, Calif. -- More than five months after first unveiling plans to acquire Maryland-based network security software maker Sourcefire for $225 million, Israel-based Check Point Software Technologies, which has U.S. headquarters in Redwood City, said late Thursday that it has withdrawn from the deal. The move comes as the Committee on Foreign Investment in the United States (CFIUS), a panel of 12 government bodies, had launched a a full-blown investigation into the national security ramifications of the deal. The Baltimore Sun reported that the FBI opposed the sale, fearing that sensitive government information being secured by Sourcefire's software could fall into the wrong hands. Check Point, which makes firewall and virtual private network software, said that it is now instead looking to partner with Sourcefire. "We've decided to pursue alternative ways for Check Point and Sourcefire to partner," said Gil Shwed, Check Point's CEO. The deal was first announced in early October.
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