Silver Lake, TPG sniff out $275 million deal

Network Associates has announced its intentions to sell its Sniffer network software line to the private equity firms while simultaneously changing its name to McAfee.

Global private equity houses Silver Lake Partners and Texas Pacific Group have agreed to acquire the Sniffer assets from network software company Network Associates for $275 million (€232 million).

The new company will be renamed Network General Corporation and will continue to develop, support, sell and market the Sniffer branded network management software products. Silver Lake and TPG will have equal ownership in Network General, which will focus exclusively on network and application performance software.

The divesture is part of an extensive restructuring program at Network Associates, which will change its name to McAfee, a moniker it currently uses for its computer security software, to emphasize the company’s new emphasis solely on security products and services.

The new technology investment follows on the heels of the closing of Silver Lake
s $3.6 billion Fund II. The Menlo Park, California- and New York-based firm’s new fund is the largest private equity buyout vehicle focused on large-scale investments in “mature technology” and related growth companies.