IBM to acquire ISS for $1.3 bn

ARMONK, NY: IBM and Internet Security Systems Inc. have entered into a definitive agreement for IBM to acquire ISS, a publicly held company based in Atlanta, Ga., in an all-cash transaction at a price of approximately $1.3 billion, or $28 per share.

The acquisition is subject to Internet Security Systems, Inc. shareholder and regulatory approvals and other customary closing conditions. The transaction is expected to close in the fourth quarter of 2006.

ISS provides security solutions to thousands of the world's leading 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 exploits and rapidly respond in advance of potential threats. This acquisition advances IBM's strategy to utilize IT services; software and consulting expertise to automate labor-based processes into standardized, software-based services that help clients optimize and transform their businesses.

IBM said this acquisition also reinforces its position in the rapidly growing 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 companies are facing, regardless of size, location or industry.

The acquisition is an important addition to IBM’s security and privacy services business. ISS’ product line and extensive expertise complements IBM’s long-standing 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 organization.

"Companies recognize that rapidly evolving security threats and complex regulatory requirements have turned security into a mission-critical priority," said Val Rahmani, general manager, Infrastructure Management Services, IBM Global Services. “ISS is a strategic and valuable addition to IBM’s portfolio of technology and services. 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.”

ISS has more than 11,000 customers worldwide including 17 of the world’s largest banks, 15 of the largest governments, 11 of the top public insurance companies and 13 of the world’s top IT organizations. ISS also brings to IBM a network of business partners skilled in selling the ISS product line and an expanded product set to the IBM Business Partner channel.

© CyberMedia News