to buy Internet Security Systems Inc. for $1.3
billion, in a move to beef up its product line in the rapidly
growing business of Internet security.
International Business Machines Corp., the world's largest
information-technology company, said it will pay $28 a share
for Internet Security, continuing an acquisition drive to fuel
growth in its software and services businesses.
The price represents a 7.7 percent premium to Internet
Security's Tuesday closing price of $26 a share on Nasdaq. The
stock rose 7 percent, or $1.82, in premarket trade.
Internet Security, which sells software and runs data
centers that help businesses protect against Internet attacks,
competes against Accenture Ltd. , Check Point Software
Technologies Ltd. , Cisco Systems Inc. , McAfee
Inc. and Symantec Corp. .
“This is something we couldn't do before because we didn't
have the software assets to provide protection against Internet
attacks,” Kristof Kloeckner, vice president of strategy and
technology for IBM's software group, said in an interview.
He said IBM plans to sell Internet Security's products as
services through its global services unit and as software
through its Tivoli software division.
This is really huge. I am on a very busy project this week, but once I get a free second, I'll post my opinions. Until then, read the full article on MSN Money.