IBM Secures ISS For $1.3 Billion
Internet Security Systems became a hot topic when one of its researchers quit the company last year to deliver a presentation at the Black Hat conference.
Now ISS makes the news again, but this time as the Atlanta-based security company becomes part of IBM. Big Blue will pay about $1.3 billion in an all-cash transaction that values ISS at $28 per share.
News of the acquisition pushed shares of ISS up 1.63 to 27.63 on the announcement. IBM has a lot of plans for ISS and its X-Force security intelligence service. ISS will become part of IBM’s Infrastructure Management Services unit when the deal is approved and finalized.
IBM will also integrate the ISS software technology with its Tivoli portfolio. That will touch on a variety of security sectors, like identity and access management, and Service-Oriented Architecture security. Also, a network of security operations centers that ISS operates globally will be added to those run by IBM.
“ISS is a strategic and valuable addition to IBM’s portfolio of technology and services,” Val Rahmani, General Manager, Infrastructure Management Services, IBM Global Services, said in a statement about the deal.
Services like security management offer tech companies like IBM the opportunity to continue to derive revenue from customers who once would have just purchased hardware from IBM.
Services also give IBM the chance to gain a customer where their hardware or software may not have a presence. An operation that primarily has H-P servers and Dell desktops, for example, may choose IBM to provide managed security services. The ISS purchase should enhance those chances of gaining that business.