EMC acquires identity specialist RSA
Storage vendor EMC has agreed to acquire RSA Security for $2.1 billion in cash.
RSA is one of the leading vendors of identity and access management technology and is best known for its digital ID devices for enterprises. The company also is the namesake of the RSA Security tradeshow which is the largest event in security industry.
The deal aims to allow EMC to further evolve from a storage vendor into an information infrastructure company, chief executive Joe Tucci said in a conference call. As EMC is broadening its scope, encryption and data protection are logical areas for the company to expand, he explained.
“We need to make sure that information is protected and […] encrypt it wherever digital information lives,” Tucci said.
He added that EMC aims for RSA to grow into a billion dollar business. The security vendor in 2005 realised revenues of $310 million and EMC by 2007 projected sales of $500 million.
Referring to surveys about investing priorities in the IT market, Tucci said “Security and storage usually dominate the top of those lists. Having both of these will bode well for us in the future.”
The deal illustrates the ongoing consolidation trends in both the security and storage markets. Sun Microsystems last year acquired StorageTek for $4.1 billion and Symantec in December 2004 shelled out $13.5 billion for Veritas.