(By Mayur Pahilajani - iStockAnalyst Writer)New York, NY - Security specialist McAfee, Inc. (NYSE: MFE) said on Monday that it has decided to acquire Internet security company Secure Computing Corporation (NASDAQ: SCUR) for $465 million in cash.

The San Jose, Calif.-based McAfee agreed to merge with Secure computing at $5.75 per common share in cash, which can be calculated to $413 million for Secure Computing’s common stock.

Under that agreement, Secure Computing's outstanding shares of preferred stock will also be redeemed for cash, which comes to additional $84 million.

"Today's announcement of this pending acquisition is a natural extension of McAfee's security-only focus," Dave DeWalt, chief executive officer and president of McAfee, said in a statement on Monday.

"We expect the pending combination of McAfee and Secure Computing will create an annual projected combined revenue of just under $500 million in the network security segment of our SRM portfolio," he added.

With the merger, both the companies will create the largest network security players. Secure Computing will bring McAfee its TrustedSource technology that will expand McAfee's "in- the-cloud" security as a service offering.

According to McAfee, it also expects to deliver the complete content and data lifecycle management at the network, spanning detection, filtering, encryption, blocking, archiving, reporting and compliance.

"I believe the combination of the two companies will allow us to reap the benefits of a worldwide dedicated sales team three times our size, best-in-class security research, greater partner distribution and enhanced cross-selling opportunities," Dan Ryan, president and chief executive officer, Secure Computing, said in a statement.

The deal is expected to close toward the end of the fourth quarter, McAfee said.

Shares of McAfee were trading down by 1.13 percent or 42 cents 36.89, while Secure Computing Corp. was trading up by 23.23 percent or $1.05 at $5.57 at 10:46am ET.