IBM acquires Internet security systems supplier

Date: 25 August 2006
(ICT World)
IBM has entered into a definitive agreement to acquire Internet Security Systems, a publicly-held company based in Atlanta, Georgia, in an all-cash transaction, at a price of approximately $1,3bn, or $28 per share. The acquisition is subject to Internet Security Systems shareholder and regulatory approvals and other customary closing conditions. The transaction is expected to close in the fourth quarter of 2006.

Internet Security Systems (ISS) aims to provide security solutions to thousands of companies and governments, helping to proactively protect against Internet threats across networks, desktops and servers. ISS software, appliances and services monitor and manage network vulnerabilities and rapidly respond in advance of potential threats.
 
Alkesh Patel, principal consultant - security & privacy services, IBM SA, says: This acquisition advances IBM's strategy to use IT services, software and consulting expertise to automate labour-based processes into standardised, software-based services that help clients optimise and transform their businesses.
 
According to Patel, the agreement also reinforces IBM's position in the area of Managed Security Services. With concerns ranging from data theft to implementing and managing increasingly complex regulatory requirements, addressing IT security has become one of the most complex challenges that companies face, regardless of size, location or industry.
 

The acquisition is an important addition to IBM's security and privacy services business. ISS's product line and extensive expertise are expected to complement IBM's security research efforts, consulting and managed service delivery capabilities, which currently provide security solutions to the heterogeneous environments of thousands of IBM's clients. ISS will join IBM as a business unit within IBM Global Services' Security organisation.