PatchLink Corp., an IT security management company, has agreed to acquire fellow venture-backed company SecureWave SA in a stock swap.

The all-stock acquisition will give investors in SecureWave an undisclosed share of the combined company, said Mike Rogers, senior vice president of strategy and corporate development at PatchLink, which is also a venture backed company.

Luxembourg-based SecureWave has raised $10 million (EUR 7.5 million) from Mangrove Capital Partners, Index Ventures and the Grand Duchy of Luxembourg.

PatchLink has raised $38 million over two rounds from Bay Partners, Granite Global Ventures, Scale Venture Partners and the Government of Singapore Investment Corp., according to Rogers.

PatchLink began expanding its portfolio of products outside of security patch management with its acquisition of Harris STAT Guardian Vulnerability Management Suite from Harris Corp. in February. The next step in that process is the acquisition of SecureWave, which makes software that protects desktops, laptops and servers from unauthorized code, such as spyware and viruses, Rogers said.

In addition to having a complementary suite of products, the acquisition will give PatchLink access to SecureWave's base of European customers, said Mark Tluszcz, a managing partner at Mangrove Capital Partners, SecureWave's largest shareholder, who will become PatchLink's largest shareholder after the close of the acquisition.

Most of SecureWave's 80 employees will join PatchLink, with the notable exceptions of chief executive Bob Johnson and chief financial officer Doug Sutherland, Rogers said. Patchlink will have about 230 employees when the deal closes.

Both companies are currently profitable, according to Dennis Szerszen, senior vice president of SecureWave.

Gerard Lopez, a managing partner with Mangrove Capital will take a seat on the board of the combined company when the acquisition is completed, which is expected in the next few weeks.