Web Security Company Buys Tiny Laguna Firm

Laguna Hills-based BeadleNet LLC, a tiny, privately held maker of Internet-based security and data-routing devices, said Monday that it has been acquired by a Seattle firm for $8.25 million in cash and stock.

BeadleNet was acquired by WatchGuard Technologies, which builds Internet security systems for small- to medium-sized e-commerce companies. The acquisition helps round out WatchGuard’s product line, as well as help the company tap into the emerging market of home networks and broadband Internet access, officials said.

The deal, which closed last week and turns BeadleNet into a division of WatchGuard, will include an additional $1 million in cash and equity if BeadleNet hits certain product deadlines, officials said.

BeadleNet was founded last January. Its 20-person staff will remain in Orange County. No layoffs are expected, officials said.

WatchGuard’s stock rose 38 cents a share on Monday, closing at $15 on the Nasdaq market.