IBM to Acquire ISS

IBM and Internet Security Systems Inc. (ISS) on Wednesday announced IBM will acquire ISS in an all-cash transaction at a price of approximately $1.3 billion, or $28 per share.

The transaction is expected to close in the fourth quarter of 2006.

ISS provides security solutions to companies and government agencies that help protect against Internet threats across networks, desktops and servers. ISS software, appliances and services monitor and manage network vulnerabilities and exploits, and respond in advance to potential threats.

The acquisition supports IBM's goal to use IT services, software and consulting expertise to automate labor-based processes into standardized, software-based services that help clients optimize and transform their businesses, the company said. It combines ISS’s automated security platform, services, software and expert consultants with IBM’s security portfolio, innovative research and global reach.

IBM will use ISS X-Force security intelligence service, which protects networks with detailed analyses of global online vulnerabilities and threat conditions. The ISS global network of security operations centers (SOCs) also will be added to IBM’s existing global network of SOCs. IBM’s security consultants and global sales force will offer ISS’s security appliances and software, and fully enable them for IBM and third-party products, services and solutions.

Following the acquisition, IBM intends to:

• Establish ISS' operations as a business unit within IBM's infrastructure management services unit, part of IBM Global Technology Services
• Integrate ISS software technology with Tivoli’s IT service management portfolio, which includes software for identity management, access management, service-oriented architecture security and security information management
• Market and sell ISS' managed security services and portfolio of network, application, server and endpoint protection products through IBM's and ISS' worldwide sales channels and business partners
• Further expand the scope and capabilities of IBM's business and IT asset management consulting practices and deliver services for ISS-based solutions through IBM Global Services
• Build upon the companies' existing business relationship, which began in 1999

IBM www.ibm.com
Internet Security Systems Inc. (ISS)  www.iss.net

Share this article: Email, Slashdot, Digg, Del.icio.us, Yahoo!MyWeb, Windows Live Favorites, Furl
Add this article feed to: RSS, My Yahoo, Newsgator, Bloglines