Not surprised by this announcement for NetScreen is feeling the heat from Cisco which has become increasingly aggressive when it comes to Security and security related products. Even CheckFree, the leader in the space is coming under pressure from Cisco. Earlier this year, F5 Networks paid about $25 million for UROAM.

Neoteris’ CEO/Founder Krishna “Kittu” Kolluri finally hits a home run after his not so spectacular single with WebMD, the infamous and stupid company started by king of hypemeister, Jim Clark. Sadly, Clark was one of the investors in this company and is the chairman of the board.

bq. NetScreen will pay $20 million in cash to Neoteris and will issue 10.9 million new shares of stock to cover the remaining portion of the acquisition price. Also, if the company achieves some revenue goals, Neoteris’ shareholders will get up to $30 million in cash.

The final price tag works out to about $265 million.The deal is good news for the guys from Barksdale Group, who have been looking for one big win, even though the fund has since shuttered its doors. Analyst firm Infonetics predicts that the SSL-based remote access market will exceed $600 million and from that perspective, NetScreen might have overpaid.