NEW YORK (CNN/Money) - Network Associates Inc. has offered to buy all the shares of anti-virus software maker McAfee.com Corp. it doesn't already own at a 20 percent premium in a deal that could exceed $200 million, the companies said Monday.
Santa Clara, Calif.-based Network Associates, which makes network security products, offered to pay $18.64 for each Class A share of McAfee (MCAF: Research, Estimates) stock outstanding, 20 percent over McAfee's closing price Friday of $15.54. With more than 11.7 million Class A McAfee shares outstanding, the deal could be worth more than $218 million.
Network Associates already owns 75 percent of Sunnyvale, Calif.-based McAfee, including all of McAfee's Class B stock, and distributes McAfee's anti-virus product.
The deal is contingent on Network Associates being able to buy at least 90 percent of the outstanding shares. McAfee has formed a committee to review the offer and recommend a response to its board. Network Associates expects to file its formal exchange offer with the Securities and Exchange Commission on or about Mar. 25, after which McAfee's board will have 10 days to recommend to shareholders whether or not they should accept the offer.
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Network Associates (NET: Research, Estimates) shares fell $1.04 Friday to close at $27.61.
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