Network Associates buys two start-ups

Making good on a recent pledge to expand into new segments of the security industry, Network Associates last week bought its way into the emerging intrusion-prevention system (IPS) market by agreeing to acquire two start-ups for a combined $220 million.

The company is purchasing privately held IntruVert Networks, a maker of network-based IPS products, for $100 million and Entercept Security Technologies, a vendor of host-based IPS offerings, for $120 million. IPS products are designed to block attacks, not just detect them as do intrusion-detection systems (IDS).

The IntruVert deal signals a break in the strategic relationship between Network Associates and IDS vendor Internet Security Systems (ISS). Last May, Network Associates licensed ISS technology with the intent of incorporating it into its own high-speed protocol-analysis product, Sniffer, by mid-2003. Last month, Network Associates executives acknowledged they were looking at other options.

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Making good on a recent pledge to expand into new segments of the security industry, Network Associates last week bought its way into the emerging intrusion-prevention system (IPS) market by agreeing to acquire two start-ups for a combined $220 million.

The company is purchasing privately held IntruVert Networks, a maker of network-based IPS products, for $100 million and Entercept Security Technologies, a vendor of host-based IPS offerings, for $120 million. IPS products are designed to block attacks, not just detect them as do intrusion-detection systems (IDS).

The IntruVert deal signals a break in the strategic relationship between Network Associates and IDS vendor Internet Security Systems (ISS). Last May, Network Associates licensed ISS technology with the intent of incorporating it into its own high-speed protocol-analysis product, Sniffer, by mid-2003. Last month, Network Associates executives acknowledged they were looking at other options.

Rival Symantec also has also entered the IPS market via the acquisition route. It bought Recourse Technologies, a maker of network-based IPS products, for $135 million last year.

Network Associates has gone through acquisitive periods before, such as in 1998 when it bought 10 companies. The company is off to a fast start this year: Aside from buying the two companies last week, it bagged antispam start-up DeerSoft in January for an undisclosed sum.

Read more about security in Network World's Security section.