• The Four Hundred
  • Subscribe
  • Media Kit
  • Contributors
  • About Us
  • Contact
Menu
  • The Four Hundred
  • Subscribe
  • Media Kit
  • Contributors
  • About Us
  • Contact
  • IBM Buys Security Expert ISS for $1.3 Billion in Cash

    August 28, 2006 Timothy Prickett Morgan

    The IBM software and services spending spree continues, and the company shelled out $1.3 billion in cold, hard cash last week to acquire Internet Security Services. ISS, the fourth big acquisition IBM has done in as many weeks, is based in Atlanta and is one of the big players in security advisories, software, and appliances.

    ISS is a publicly traded company, and only two months ago its stock was trading down in the range of $18 a share after a hiccup caused, in part, by problems with its ERP system. IBM’s all-cash offer of $28 a share was only a modest premium compared to the stock’s trading price before the deal was announced, but it is a pretty big premium compared to that low point in July. ISS was on a short list of companies that were named as potential acquisition targets in the wake of Hewlett-Packard‘s $4.5 billion acquisition of Mercury Interactive in July. And so it has come to pass.

    IBM and ISS have been partners since 1999. IBM is planning to use the ISS portfolio of security products as a means of delivering managed security services, and as such, ISS will not be merged in IBM’s Systems and Technology Group or its Software Group, but rather into the infrastructure management services division within its Global Services group. This division is headed up by Val Rahmani, who was one of the people who spearheaded IBM’s acquisition of the consulting business of PricewaterhouseCoopers and who is one of the rising stars at Big Blue.

    ISS was founded in 1994 and went public on the NASDAQ in 1998. The company has 1,250 employees and booked $329.8 million in sales and $38.6 million in net earnings in 2005; it has over 11,000 customers, who use its X-Force security intelligence service or who use its intrusion detection and prevention appliances. IBM has over 3,500 security experts working in Global Services, who help analyze vulnerabilities and implement security solutions for customers. So the ISS deal bulks up its headcount significantly. IBM says that Tivoli systems management and security products will be integrated with the X-Force service, and that it will continue to sell security appliances itself and through its partner channel.

    IBM expects the acquisition to close within two months.

    RELATED STORIES

    Software Hungry IBM Eats ECM Rival FileNet for $1.6 Billion

    IBM Acquires Webify and MRO to Enhance Software, Services Offerings

    Share this:

    • Reddit
    • Facebook
    • LinkedIn
    • Twitter
    • Email

    Tags: Tags: mtfh_rc, Volume 15, Number 34 -- August 28, 2006

    Sponsored by
    ARCAD Software

    Embrace VS Code for IBM i Development

    The IBM i development landscape is evolving with modern tools that enhance efficiency and collaboration. Ready to make the move to VS Code for IBM i?

    Watch this webinar where we showcase how VS Code can serve as a powerful editor for native IBM i code and explore the essential extensions that make it possible.

    In this session, you’ll discover:

    • How ARCAD’s integration with VS Code provides deep metadata insights, allowing developers to assess the impact of their changes upfront.
    • The role of Git in enabling seamless collaboration between developers using tools like SEU, RDi, and VS Code.
    • Powerful extensions for code quality, security, impact analysis, smart build, and automated RPG conversion to Free Form.
    • How non-IBM i developers can now contribute to IBM i projects without prior knowledge of its specifics, while ensuring full control over their changes.

    The future of IBM i development is here. Let ARCAD be your guide!

    Watch the replay now!

    Share this:

    • Reddit
    • Facebook
    • LinkedIn
    • Twitter
    • Email

    Joblogapalooza, Its Possible Causes, and a Call for Input Undocumented Debugger Function

    Leave a Reply Cancel reply

TFH Volume: 15 Issue: 34

This Issue Sponsored By

    Table of Contents

    • Lawson Report Says Compliance Costs More Than You Think
    • Federal Trade Commission to Weigh In on Net Neutrality
    • Magic Software Reports Financial Slide, Seeks to Regain Form in Europe
    • DataMirror Reports Gains in the Second Quarter
    • IBM Debuts New WebSphere Portal 6.0, Slices Prices
    • Lawson Report Says Compliance Costs More Than You Think
    • IBM Buys Security Expert ISS for $1.3 Billion in Cash
    • As I See It: Corporate Tithing
    • COMMON Preview: A Few Little Changes, and Some Big Ones in Store
    • The Server Market Struggles for Growth in Q2, Says IDC

    Content archive

    • The Four Hundred
    • Four Hundred Stuff
    • Four Hundred Guru

    Recent Posts

    • POWERUp 2025 –Your Source For IBM i 7.6 Information
    • Maxava Consulting Services Does More Than HA/DR Project Management – A Lot More
    • Guru: Creating An SQL Stored Procedure That Returns A Result Set
    • As I See It: At Any Cost
    • IBM i PTF Guide, Volume 27, Number 19
    • IBM Unveils Manzan, A New Open Source Event Monitor For IBM i
    • Say Goodbye To Downtime: Update Your Database Without Taking Your Business Offline
    • i-Rays Brings Observability To IBM i Performance Problems
    • Another Non-TR “Technology Refresh” Happens With IBM i TR6
    • IBM i PTF Guide, Volume 27, Number 18

    Subscribe

    To get news from IT Jungle sent to your inbox every week, subscribe to our newsletter.

    Pages

    • About Us
    • Contact
    • Contributors
    • Four Hundred Monitor
    • IBM i PTF Guide
    • Media Kit
    • Subscribe

    Search

    Copyright © 2025 IT Jungle