Symantec to buy SecurityFocus, Riptech, Recourse

Security vendor Symantec Corp. announced three high-profile acquisitions late Wednesday at the same time it reported its financial results for the second quarter 2002. Symantec will acquire SecurityFocus Inc., Riptech Inc. and Recourse Technologies Inc. for a total of about US$355 million in cash, the company said.

Symantec, which is based in Cupertino, California, currently sells antivirus software, personal firewalls, security appliances, utilities and other products. The acquisitions, all expected to close in mid-August, will take Symantec strongly into additional and new markets, and potentially make it the dominant player in those areas, according to an analyst.

SecurityFocus, which Symantec will acquire for $75 million, offers a security event monitoring and alert service, as well as a threat database. The company also hosts a number of high-profile security e-mail lists, including Bugtraq. The San Mateo, California, company's offerings will be integrated with Symantec's antivirus research and response capabilities, Symantec said.

Riptech provides managed security services for firewalls, intrusion detection systems, virtual private networks and other security products. The company is located in Alexandria, Virginia. Symantec will buy it for $145 million.

Recourse, which is based in Redwood City, California, is a vendor of intrusion detection systems (IDS), including the ManHunt and ManTrap products. Symantec already sells its own IntruderAlert IDS product. Recourse will come to Symantec with a $135 million price tag.

The deals were announced at the same time that Symantec reported $316 million in revenue for the second quarter of 2002, up from $228 million in the same quarter last year.

Markets reacted favorably to the news in off-hours trading, with Symantec's stock (SYMC) trading at $34.81 per share, up over its Wednesday closing price of $33.10.

Analysts also praised the deal.

"This positions them clearly to own the entire threat management space," which includes IDS and security intelligence and monitoring services, according to Peter Lindstrom, senior security strategies analyst at the Hurwitz Group Inc.

"This is Symantec's major play into owning threat management," he said.

The deals bring Symantec a number of "intriguing" products and technologies, he said.

Symantec's moves also leave IDS powerhouse Internet Security Systems Inc. (ISS) as the only other major threat management player and puts Symantec rival Network Associates Inc. (NAI) at a disadvantage, he said. That situation could lead to further consolidation, he added.

"It looks like NAI needs to buy ISS to create the space we're looking for," he said, referring to the market.

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Sam Costello

Computerworld
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Kurt Hegetschweiler

Brother PocketJet PJ-773 A4 Portable Thermal Printer

It’s perfect for mobile workers. Just take it out — it’s small enough to sit anywhere — turn it on, load a sheet of paper, and start printing.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?