News
IBM To Buy ISS for $1.3 Billion
IBM Corp. said Wednesday it will spend $1.3 billion in cash to acquire Internet
Security Systems Inc., which performs network monitoring and analysis services
for companies.
The deal values ISS at $28 a share, an 8 percent premium to ISS's close at
$26 on Tuesday on the Nasdaq Stock Market. If the acquisition is approved by
shareholders, the companies expect it to close in the fourth quarter.
Armonk, N.Y.-based IBM has now agreed to buy three public companies this month
alone. Two weeks ago it reached a pact to buy document-management software provider
FileNet Corp. for $1.6 billion. On Aug. 3 Big Blue agreed to spend $740 million
for MRO Software Inc., which helps industrial companies track physical assets.
Buying ISS could bolster Big Blue's ability to take on what it calls "managed
security services" for its business customers. ISS helps guard against
data theft and other problems with automated monitoring products and with technical
consultants, who now will be part of IBM's vast services arm.
Based in Atlanta, ISS says its 11,000 customers include 17 of the world's largest
banks. The company earned $38.5 million on $330 million in revenue last year;
this year's revenue is expected to surpass $350 million.