IBM buys ISS for 1.3 billion

IBM announced today that they are acquiring ISS for 1.3 billion dollars. This has been rumored for several weeks, I remember talking to folks at Black Hat about it.  In fact I thought the moment had passed and the deal was not going to happen.  In any event, it certainly puts IBM right in the middle of the security game like never before.  I think this could spell double trouble for Symantec and McAfee, who are trying to diversify out of the AV game due to pressure from MS, they will now have IBM banging them from the other side. 

A couple of other thoughts here.  Did IBM buy ISS for the growing services business in MSSP?  ISS for years has been growing more and more services and less and less software revenue.  In fact some might claim they were more a services company than a software company.  Also, to a certain extent was ISS part of the walking dead.  Still a player, but frankly not keeping up with cutting edge stuff and living on their reputation.  I have not done the financial analysis to see whether it was a good price, but I think 1.3 billion is a lot of money no matter what. Two dollars a share premium, from 26 to 28 dollars.  I think Tom Noonan and the rest of the ISS team should be congratulated on bringing this ship into port.  The real question is what does IBM do with this company.  Do they emphasize the services and research or do they revitalize the product line up.  Time will tell.  It certainly makes for excitement in the security industry though.