Analyst: Buying Cybertrust a Good Move for Verizon Business

Verizon Business’ acquisition of Cybertrust will make the former MCI a powerful player in the managed information security services market dominated by AT&T Inc.

That’s according to research firm Ovum in response to the Verizon Business announcement today that it’s buying Cybertrust for an undisclosed sum.

Verizon Business will combine Cybertrust, an information security provider, with its own security portfolio. Privately held Cybertrust is headquartered in Virginia, with 30 offices worldwide. This footprint, in addition to Cybertrust’s 800 employees, gives Verizon Business a much-needed competitive boost, said Jan Dawson, vice president of Ovum’s U.S. enterprise practice.

“Verizon Business … has lagged behind AT&T in the security space for some time,” Dawson wrote in a research note. “Verizon Business' previous acquisition in this space, the purchase of NetSec for $105 million by the former MCI in January 2005, was significantly smaller. Cybertrust is several times larger (no doubt the purchase price is too), and this acquisition should catapult Verizon Business into a much stronger position on security.”

Verizon Business said the transaction will close in 60 to 90 days.

Cybertrust specializes in identity management, managed security services, vulnerability/threat management, security certification programs and professional services such as risk analysis.

Frost & Sullivan has forecast that the managed security services market will exceed $6 billion by 2011.

Cybertrust www.cybertrust.com
Verizon Business www.verizonbusinesscom

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