IBM To Buy Internet Security Systems

By Niladri Sekhar Nath

TMCnet Contributing Editor

 

IBM has decided to acquire Internet Security Systems, Inc., a publicly held company based in Atlanta, Ga., in an all-cash transaction at a price of about $1.3 billion or $28 per share.  However, the acquisition will be finalized on the basis of shareholder and regulatory approvals and other customary closing conditions. IBM (News - Alert) says that the transaction is likely to close in the fourth quarter of 2006.

 

IBM's security and privacy services business will definitely receive a boost thanks to the agreement. Analysts think that ISS' product line and know-how will enhance IBM's security research efforts as well as their consulting and managed service delivery capabilities. ISS will become a key business unit within IBM Global Services' Security organization.

 

Internet Security Systems (ISS) offers security solutions to thousands of companies and governments. Their solutions help those organizations protect against Internet threats across networks, desktops and servers.

 

According to an IBM press release, the company feels that the acquisition will further its strategy to make use of IT services, software and consulting expertise to automate labor-based processes into standardized, software-based services.

 

With the acquisition, IBM will be in a position to integrate ISS' automated security platform, services and software with its extensive security portfolio, innovative research and global reach.

 

“This acquisition will help IBM to provide companies with access to trained experts and leading-edge processes and technology to evaluate and protect against threats and enforce security policies," rightly sums up Val Rahmani, General Manager, Infrastructure Management Services, IBM Global Services.

 

Tom Noonan, President and CEO of ISS says that the acquisition will bolster IBM's leading security services and products. Meanwhile, IBM makes it clear that the company will utilize ISS' X-Force security intelligence service that protects networks with detailed analyses of global online vulnerabilities and threat conditions.

 

The acquisition gives IBM the right to market and sell ISS' Managed Security Services and range of Network, Application, Server and Endpoint Protection products through IBM's and ISS' worldwide sales channels and Business Partners.

 

 

For more information visit:  www.ibm.com   www.iss.net