Nokia's security appliance business provides purpose-built security platforms optimized for Check Point fire wall, virtual private network (VPN) and unified threat management (UTM) software. About 85% of Fortune 500 companies have bought Nokia's security platforms. More than 220,000 Nokia appliances have been installed with over 23,000 customers worldwide.
Check Point has a broad range of security gateways, available as software as well as Check Point's UTM-1 and Power-1 dedicated appliances. More than 700,000 Check Point security gateways have been licensed with over 100,000 customers worldwide. The Check Point customer base includes 100 percent of Fortune 100 and 98 percent of Fortune 500 companies.
The agreement between Check Point and Nokia is expected to close in the first quarter of 2009 subject to regulatory approvals and customary closing conditions.
The cellular telecommunication equipment maker Nokia decided to sell its security appliance business as part of a strategy of focusing on the consumer segment. The companies did not disclose the value of the deal. Market estimates are in the tens of millions of dollars. Payment will come out of Check Point's large reserves of cash and cash equivalents, which amounted to $1.4 billion at the end of the third quarter.
"This is an exceptional deal," Shwed said, "the business is good, synergetic, big, and very profitable. At a cautious estimate, the deal will contribute over $100 million to our revenue in 2009, and will also contribute handsomely to profit."