by CIO Staff

IBM Finishes Up ISS Buy

News
Oct 23, 20061 min
IT Strategy

IBM has closed its US$1.3 billion acquisition of security vendor Internet Security Systems.

The acquisition, which closed Friday, is the fifth-largest in IBM’s history.

By purchasing Atlanta-based ISS, IBM gains a strong position in the $22 billion managed security services market, which IBM sees as strategic to its future growth.

ISS will retain its Atlanta offices and will be run as a business unit within IBM’s Global Services group. The ISS business unit will be led by Thomas Noonan, formerly the CEO of ISS. No layoffs are planned as a result of the deal.

IBM plans to maintain the ISS Proventia and Managed and Professional Security Services offerings and to eventually integrate them with other products in its portfolio.

The security industry is undergoing a round of consolidation as early leaders are being snapped up by larger companies. In June, EMC announced plans to purchase RSA Security, a deal estimated at about $2.1 billion.

-Robert McMillan, IDG News Service (San Francisco Bureau)

Related Links:

  • IBM’s ISS Bid to Broaden Security Portfolio

  • IBM to Buy Internet Security Systems for $1.3B

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