Checkpoint Technologies announced that it will acquire Zone Labs, maker of the popular ZoneAlarm desktop firewall line of products. Checkpoint will pay $205 million for the company, $113 million of which will be in cash and approximately $92 million in Checkpoint stock. The deal is expected to close in the first quarter of 2004. More than 25 million desktops and 1,100 enterprises use ZoneAlarm firewalls.

Gregor Freund, CEO and co-founder of Zone Labs said, "Our shared passion for excellence and Check Point's commitment to Zone Labs' products, partners and customers were paramount in making this decision. Our common vision will result in the most complete and manageable security solution to protect the fastest-growing, most vulnerable segment—network endpoints."

Once the acquisition is complete Zone Labs, with more than 200 employees, will operate as a division of Checkpoint Technologies.