Big Blue secures ISS for $1.3bn

IBM made a resounding move into security on Wednesday, acquiring Internet Security Systems (ISS) for $1.3bn.

The all-cash transaction of about $28 per share is meant to bolster IBM's ability to deliver security services to corporations, the company said.

ISS builds network protection products and services, including intrusion detection and monitoring tools.

IBM said it intends to use ISS' expertise and software to provide more robust security-related services to its corporate customers.

Val Rahmani, general manager of infrastructure management services at IBM Global Services, said: "This acquisition will help IBM to provide companies with access to trained experts and leading-edge processes and technology to evaluate and protect against threats and enforce security policies."

The ISS acquisition, expected to close in fourth quarter of this year, adds to a rapid-fire succession of big purchases at IBM. In August alone, IBM has announced plans to buy FileNet, MRO Software and Webify Solutions. The tab, if all the deals go through, will exceed $3.6bn.

Looking to boost revenue from software and services, most of the company's acquisitions - which total more than 40 since 2003 - have been software companies.

IBM is seeking to grow profits by creating a comprehensive product portfolio and deliver a combination of software and consulting services, according to company executives.

With ISS, Big Blue intends to deliver the company's products through consulting engagements and hosted services.

Tom Noonan, president and CEO of ISS, said: "By delivering an integrated security platform that is adaptable and extensible to address new threats and business requirements without incremental complexity and cost, ISS has delivered the foundation for delivering security as a service."

IBM already offers some managed security services and includes security software in its Tivoli product line.

Martin LaMonica writes for CNET News.com