IBM and Internet Security Systems, Inc. have announced the two companies have entered into a definitive agreement for IBM to acquire Internet Security Systems, Inc., 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.
Internet Security Systems (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.
This acquisition also reinforces IBMs 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.
ISS augments IBMs ability to address this growing industry challenge by combining ISS complementary automated security platform, services, software and expert consultants with IBMs broad security portfolio, innovative research and global reach. Together, IBM and ISS will help clients of all sizes preemptively stay a step ahead of targeted security threats or attacks.
The acquisition is an important addition to IBMs security and privacy services business. ISS product line and extensive expertise complements IBMs long-standing security research efforts, consulting and managed service delivery capabilities, which currently provide security solutions to the heterogeneous environments of thousands of IBMs clients. ISS will join IBM as a business unit within IBM Global Services Security organization.
IBM will utilize ISS X-Force security intelligence service, which proactively protects networks with detailed analyses of global online vulnerabilities and threat conditions. The ISS global network of security operations centers (SOCs), which include sites in Tokyo, Brussels, Brisbane, Detroit and Atlanta, will also be added to IBMs existing global network of SOCs. IBM security consultants and global sales force will also offer ISS line of security appliances and software, and fully enable it for IBM and third party products, services and solutions.
ISS has more than 11,000 customers worldwide including 17 of the worlds largest banks, 15 of the largest governments, 11 of the top public insurance companies and 13 of the worlds top IT organizations. IBM currently has over 3,500 professionals delivering consulting, implementation and out-tasking security services to thousands of organizations all over the world.
Following completion of the acquisition, IBM intends to:
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www.ibm.com
www.iss.net
Taken from Information Security Bulletin.