IBM to acquire ISS for $1.3 billion

Computing giant IBM will acquire information security and service provider Internet Security Systems (ISS) for about $1.3 billion, the two companies announced today.

The acquisition will further IBM's business plan to better address IT security for its customers as the issue becomes "one of the most complex challenges companies are facing, regardless of size, location or industry," according to a joint statement issued by both firms.

Atlanta-based ISS, founded in 1994 and now with more than 11,000 customers, provides automated solutions and managed security services that protect enterprises from the latest vulnerabilities and exploits. The company will join IBM as a business unit within its Global Services Security organization.

"Companies recognize that rapidly evolving security threats and complex regulatory requirements have turned security into a mission-critical policy," Val Rahmani, general manager of IBM's infrastructure management services group, said in the statement. "ISS is a strategic and valuable addition to IBM's portfolio of technology and services. This acquisition will help IBM to provide companies with access to trained experts and leading-edge processes and technology to evaluate and protect against threats and enforce security policies."

Following the acquisition, expected to close in the fourth quarter of this year, IBM will:

  • Integrate ISS' software technology with Tivoli's IT security management portfolio.
  • Sell ISS' Managed Security Services and portfolio of products through the companies' global channel and business partners.
  • Expand the scope of its business and IT asset management consulting practices by delivering services for ISS solutions.

Click here to email reporter Dan Kaplan.

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