SAN JOSE - NetIQ Tuesday announced plans to acquire PentaSafe Security Technologies, a security management software vendor, for $255 million in combined cash and stock options.
NetIQ, best known for its systems management software, will add PentaSafe's VigilEnt integrated security management software tools into its product portfolio. Under the terms of the deal, NetIQ will pay $192.5 million in cash and issue about 4.3 million shares and options to PentaSafe shareholders. The deal is set to close by Dec. 31.
NetIQ also separately this week announced upgraded versions of its security management tools, and the company says acquiring the Houston-based PentaSafe will help NetIQ provide more comprehensive security tools.
PentaSafe technology will help NetIQ enhance its systems and security management offerings to include: directory and user management, policy management, firewall analysis and reporting, intrusion detection, vulnerability management, and centralized centralized security incident and event management.
NetIQ security management products compete with the likes of IBM Tivoli software, Computer Associates and Micromuse. Security management vendors such as e-Security, netForensics and ArcSight also offer similar security event aggregation and correlated tools.
NetIQ's Houston operations and PentaSafe will be combined into one facility there following the close of the deal. PentaSafe, founded in February 1997, had about 300 employees and 1,250 customers worldwide, according to its Web site.
Doug Erwin, currently PentaSafe's CEO, will join NetIQ's Board of Directors and become general manager of the combined entity's Security Management and Administration business unit. The PentaSafe VigilEnt products will be integrated with NetIQ's Security Management and Administration products under the brand NetIQ VigilEnt.
NetIQ expects the acquisition to be accretive to the company's earning within 12 months, and integration activities during the first six to nine months will require NetIQ to increase operating expenses. NetIQ stock closed at $14.50 on Sept. 30, and based on that the total amount the company will pay for the acquisition is $255 million.
This acquisition is subject to regulatory approvals and customary closing conditions.
RELATED LINKS
Contact Staff Writer Denise Dubie
Other recent articles by Dubie
Users shoring up net security with SIM
Matt Speare estimates that it would require a staff of nine to monitor just one security event console consolidating logs from 30 devices 24-7 on his network at Ohio Savings Bank in Cleveland.
Users learning to manage VoIP networks
Gary Todd knew that managing a voice-over-IP network involved a lot of preparation. So he and his staff tapped the knowledge of specialists with experience in data and voice communications and chose VoIP products from a vendor with a telecom background. But he still learned something new after implementing the network.
Apply for your free subscription to Network World. Click here. Or get Network World delivered in PDF each week.
Request a reprint or permission to use this article.
