Radware Is Best Valuation for HP, IBM, Kreizman Says

(Corrects title of Logut in second paragraph.)

Jonathan Kreizman, a technology analyst at Tel Aviv-based Clal Finance Brokerage Ltd, said Radware Ltd. (RDWR) represents the best valuation for Hewlett-Packard Co. (HPQ) or International Business Machines Corp. (IBM) to enter the load- balancing switch industry.

Kreizman’s commented after Hebrew daily Globes reported that Tel Aviv-based Radware is in talks to be sold to either HP or IBM for approximately $945 million. Beat Welte, a spokesman for HP in Switzerland, and Ken Saunders, a spokesman in the U.K. for IBM, didn’t return calls made by Bloomberg News. Sandra Logut of the Le Savoir Dire public relations company, which represents Radware, said she had no knowledge of the matter.

On Lack of Alternatives:

“Radware is the last of three stand-alone companies in the load-balancing switch market despite expectations for consolidation. Considering IBM and HP’s motivation to compete with Cisco Systems, Inc. in the networking market, Radware along with Citrix Systems Inc. and F5 Networks Inc. (FFIV) were the only alternatives.”

On Catching Up With Cisco:

“Radware plays a role in one of the networking elements which HP lags over Cisco, making it a natural acquisition target for HP. Radware was a natural option, given the valuation of Radware’s peers turned out too pricey.”

On Alteon Acquisition:

“It’s important to note that the company has been able to carry out a significant turn-around and a large part of this began with its acquisition of Alteon Websystems Inc.” assets “from Nortel Networks Corp. (NRTLQ) for $18 million after Nortel purchased Alteon for $7 billion about a decade ago.”

To contact the reporter on this story: David Wainer in Tel Aviv at dwainer1@bloomberg.net

To contact the editor responsible for this story: Claudia Maedler in Dubai at cmaedler@bloomberg.net.

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