EMC Buys RSA Security For US$2.1-billion

June 30th, 2006: Security no longer a side-issue for the US storage vendor, as massive acquisition sets out its stall to sell encryption.

Under the terms of the agreement, EMC will pay $28.00 per share in cash in exchange for each share of RSA and the assumption of outstanding options, for an aggregate purchase price of slightly less than $2.1 billion, net of RSA's existing cash balance. The acquisition is expected to be completed late in the third quarter or early in the fourth quarter of 2006, subject to customary closing conditions and regulatory approvals.

What this all actually means is that EMC now owns some of what is widely recognised to be the most effective encryption, data security and identity management products available on the market. Unlike acquisitions such as VMware and Documentum, however, RSA will apparently not retain its identity but will instead become EMC's Information security division. RSA CEO and President, Art Coviello, will become an Executive Vice President of EMC and President of the security division.

RSA Security itself lists the following product sets:
Authentication and Credential Management
Access Management (Identity Management)
Data Protection
Regulatory Compliance
Password Management
Identity Administration
Consumer Identity Protection
Portal and Partner Integration
Mobile Workforce Security
Digital Rights Management (DRM)

Obviously and acquisition of this financial weight, and of a company of RSA's prominence is a clear sign that the continuing emphasis users globally on security carries more weight than it has ever done.

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