Commtouch Software Ltd. (CTCH) said on Tuesday that it has entered into a definitive asset purchase deal to acquire the assets, products, licenses, and operations of the Command antivirus division of Authentium, Inc.
Commtouch is expected to pay $4.6 million in cash and an additional 'earnout' contingent upon the achievement of certain revenue milestones through December 31, 2011, which may bring the total amount to approximately $8 million.
The company said that the acquisition is expected to be accretive starting the first quarter post-closing, and should contribute positively to Commtouch's non-GAAP top and bottom line in 2011. The acquisition will also allow Commtouch to accelerate its rate of growth in revenues and profits.
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