Check Point buying Sweden's Protect Data for $586 million

The Israeli data security company Check Point Software Technologies  (Nasdaq: CHKP)  said on Monday it would buy data security company Protect Data (Stockholm:PROT.ST) for about $586 million.

This is just the second acquisition in Check Point's history. Its first was Zone Labs, acquired in December 2003 for more than $200 million.

The Swedish company's solutions are designed to protect laptops, handheld computers and smart phones.

Check Point says the acquisition will help it achieve the next stage in its strategy: adding a new dimension of defense for enterprise data, by protecting portable computing products.

During the first nine months of 2006, Protect Data generated 92% revenue growth to $52.4 million. Its profit soared 170% to $8.3 million.

The deal values Stockholm-based Protect Data at SEK 180 per share, or SEK 4.2 billion. Protect Data's shares closed at SEK 175.50 on Friday.

The hefty half-billion and more price tag for Protect Data is no problem for Check Point, which ended the third quarter of 2006 with $1.61 billion in cash.

Check Point is run by Gil Shwed.

Check Point stock