Netegrity Acquires Business Layers For $42.5 Million

Under terms of the deal, announced Dec. 31, Business Layers will receive $15 million in cash and $27.5 million in Netegrity stock.

The acquisition provides Netegrity with Business Layers' open-source eProvision software, which automates network point of entry and offers a single point of administration for Web-based services. Netegrity has been licensing this product for more than a year and will now offer the product under the Netegrity IdentityMinder brand, according to company CEO Barry Bycoff.

"Netegrity has long recognized the strategic importance of provisioning and its key role in identity management," Bycoff said in a statement. "The market is clearly evolving to an integrated identity and access management solution that spans the enterprise and beyond."

Waltham, Mass.-based Netegrity also plans to invest in eProvision as a stand-alone product, said Bycoff. There was no immediate indication how soon Netegrity would incorporate the new offering into its existing Technology Partner and System Integrator Partner channel programs.

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Policy-based provisioning software such as eProvision comprises the heart of most identity and security management systems. It allows companies to manage employee, partner and customer access to different network applications by allocating IT resources according to corporate rules and regulations.

A Netegrity spokeswoman said the company would retain most of the current Business Layers employees. She added that Business Layers CEO Izhar Shay will not join Netegrity as part of the acquisition.