EMC buys Network Intelligence on back of RSA deal

EMC has announced plans to buy security information and event management vendor Network Intelligence for $175 million.

The deal is expected to close by the end of business today.

Hot on the heels of the completion of its acquisition of RSA Security for $2.1 billion, the storage giant's latest purchase will form part of its newly-formed information security division.

To complement its current spending spree, the company confirmed that it will continue to fund its $3 billion-plus 2006 share buy-back programme.

"The additions of RSA and Network Intelligence to the EMC family enable us to execute on our information-centric security strategy to help organisations around the world secure their information throughout its lifecycle and reduce the associated cost of regulatory compliance," said Joe Tucci, EMC's chairman, president and chief executive.

"Information security continues to dominate the spending intentions of CIO's around the world. The battlefront in security has quickly shifted from securing the network perimeter to protecting and securing the information itself-wherever that information lives and wherever it moves."

The company will maintain RSA Security's brand name while Network Intelligence will operate as a business unit within the new division.

The division will share many existing general and administrative resources with its parent company. However, it will benefit from dedicated sales, service, distribution and research and development (R&D) facilities.

A main focus for the newly-formed business will be the creation of a common security platform (CSP) to ensure EMC's customers benefit from products with built-in security functionality.

Former RSA chief executive Art Coviello will lead the new security division.

He said: "It's becoming critical that security move beyond a point product solution. Customers are in need of security that is built in and broadly distributed within the IT infrastructure to protect people, gear and data as a cohesive solution.

"EMC now has the resources and expertise to give customers seamless and pervasive security that allows them to leverage their information as a valuable asset rather than a potential liability."

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