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CA seals $430m Netegrity deal

More consolidation in the security market...

By Will Sturgeon

Published: 6 October 2004 15:35 GMT

Computer Associates has announced a deal to acquire security vendor Netegrity in a $430m all-cash deal marking the latest in a string of mergers and acquisitions in the security space.

The deal marks the latest milestone in CA's regenerative journey away from the federal investigation and ensuing changes which have marred the past 18 months of the software giant's recent history.

Kenneth Cron, interim CEO at CA, said the deal is important in moving on and setting a post-investigation agenda which aligns the company closely with four key principles: "Product development, geographical expansion, new routes to markets and acquisition."

The fourth point, the most relevant under the circumstances, represents a sea-change for CA, which only 18 months ago drew a line under its acquisition strategy.

In August, CA bought Pest Patrol and integrated that company's products into its eTrust portfolio. The company will now add Netegrity products to its growing suite.

"Our goal is to continue to be a major player in security," said Cron.

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