EMC acquires Network Intelligence

HOPKINTON: EMC Corporation today announced the acquisition of Massachusetts-based Network Intelligence, a security information and event management company, in a cash transaction valued at approximately $175 million.

It also announced that it had completed the acquisition of Massachusetts-based RSA Security.

Under the terms of the definitive agreement announced on June 29, 2006, EMC paid $28.00 per share in cash in exchange for each outstanding share of RSA and the assumption of outstanding options for a total purchase price of approximately $2.1 billion, net of RSA’s existing cash balance. RSA Security stockholders approved the acquisition on Thursday, September 14, 2006.

The acquisition of RSA and Network Intelligence together will create a new information security division of EMC.

RSA Security adds industry-leading enterprise identity and access management products, consumer identity and fraud protection solutions, encryption and key management software and tremendous security knowledge and expertise to EMC’s expanding, information-centric security product and service portfolio.

Network Intelligence advances EMC’s information-centric security strategy by providing tools that enable companies to collect, monitor, analyze and report on security event-related activity throughout the IT infrastructure – in the network, in enterprise applications, on mainframes, on desktops, in storage devices or elsewhere.

Joe Tucci, chairman, president and CEO, EMC, said, “The additions of RSA and Network Intelligence to the EMC family enable us to execute on our information-centric security strategy to help organizations around the world secure their information throughout its lifecycle and reduce the associated cost of regulatory compliance.”

Operating under the RSA brand, EMC’s security division will be headquartered in Bedford, Massachusetts and led by Art Coviello, the former CEO of RSA Security. Coviello is an Executive Vice President of EMC and the President of RSA, reporting directly to Tucci.

EMC also announced the establishment of a $2.2 billion short-term, unsecured credit facility, which it is using to pay for the RSA acquisition. David Goulden, executive vice president and chief financial officer, EMC, said, “The availability of this credit facility benefits EMC because it enables us to complete the acquisition while avoiding the cost of monetizing our short term investments ahead of normal maturity, providing a very efficient way for us to utilize the strength of our balance sheet.”

Additionally, EMC reaffirmed its commitment to spend at least $3 billion to repurchase EMC shares during 2006.

Immediately following the announcement of EMC’s intent to acquire RSA Security, the two companies assembled cross-functional teams to develop extensive integration plans designed to maximize business leverage and efficiencies.

Key areas of integration includes organisation, sales, service and distribution, and R&D.

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