EMC buys RSA Security

SSN Staff  - 
Tuesday, August 1, 2006

HOPKINTON, Mass.--Global information management and storage manufacturer EMC on June 29 announced the acquisition of security software giant RSA Security for $2.1 billion. Joe Tucci, EMC chief executive officer, said in a statement that EMC has been looking to grow its security revenues for some time, and expected to do sales in excess of $500 million in 2007. RSA brings an extensive array of encryption technologies and its SecurID authentication offerings.
This deal has led analysts to speculate that IT security will now see increased M&A activity. One observer felt that Symantec, for example, would be a target for Cisco, which recently purchased Meetinghouse Data Communications, a provider of client-side 802.1x supplicant security software.