IBM Buys Intrusion Prevention Vendor ISS

IBM announced this morning an agreement to acquire Internet Security Systems for $1.3 billion. The acquisition will give IBM access to a robust line of security hardware and software technologies, including the Proventia intrusion prevention system appliance line and a leading vulnerability scanner.

"The acquisition of ISS gives IBM's security services business an industry-leading automated security platform to offer standardized, enterprise-wide preemptive protection against security threats. Adding ISS' automated security platform, services, software and expert consultants to IBM's global security portfolio will help clients battle stay ahead of multiplying security threats, viruses and attacks," IBM said in statement this morning.

ISS, an Atlanta-based company, has been struggling to maintain position in the competitive security market. Starting out as a software company, it launched the Proventia appliances after McAfee (then Network Associates) withdrew from a partnership and bought into the intrusion prevention market. Industry observers speculated that ISS would merge or be acquired with another IT or security company, but few predicted IBM as a possible suitor. Last fall, it launched a new channel effort, turning over most of its service offerings to its VAR partners.

This is the fifth largest acquisition IBM has made in its history and the largest acquisition made by IBM Global Services since it bought PricewaterhouseCoopers in 2002.

IBM and ISS will hold a press conference this morning to discuss the details of the deal. VARBusiness.com will post a follow up report this afternoon.