Hitachi has acquired Calgary-based M-Tech Systems as part of a strategy to broaden its overall security portfolio. M-Tech, a leading provider of identity management software and services, is now known as Hitachi ID Systems.
The acquisition will allow Hitachi to focus on information systems and technology within the growing identity and access management (IAM) market, Masat Saito, executive general manager of the information and telecommunication system group of Hitachi, told SCMagazineUS.com on Tuesday.
“This will give us a better chance to be a business force in the idea market,” said Saito. “M-Tech's identity management technology will be an integral component of Hitachi's information security solution offering.”
According to a February 2008 Forrester Research report, the IAM market is expected to grow from nearly $2.6 billion in 2006 to more than $12.3 billion in 2014.
The new partnership also recognizes the need for organizations to expand their investment in information security as stricter regulations requiring stronger internal controls and more effective privacy protection are enforced.
The acquisition will also give the former M-Tech Systems room to grow, according to Gideon Shoham, CEO of Hitatchi ID Systems.
“It allows us to build a brand,” he said. “Plus, it will make us a recognized global technology company.”
Hitachi ID intends to build on M-Tech's leadership in the identity management marketplace by leveraging Hitachi's brand and market channels and by developing new opportunities in collaboration with other Hitachi Group companies worldwide. These opportunities may include joint offerings and other initiatives with Hitachi's biometric, RFID, smart card and other security-related technologies.
Hitachi is an $86 billion global entity that employees more than 300,000 people within 74 subsidiaries worldwide.