Business & Finance
News
9/24/2004
03:25 PM
Connect Directly
RSS
E-Mail
50%
50%

Security Companies Plan Merger

Cybertrust will sell public key infrastructure technology and services

Computer-security companies TruSecure Corp. and Betrusted Holdings Inc. said last week they would merge to create a new company called Cybertrust that would sell a portfolio of technology and consulting services in domestic and foreign markets and could become one of the largest specialized companies in the computer-security field.

TruSecure chairman and CEO John Becker will become CEO of Cybertrust.

TruSecure chairman and CEO John Becker will become CEO of Cybertrust.
Cybertrust will sell consulting services that can help businesses evaluate and upgrade IT systems to comply with U.S. government regulations such as the Sarbanes-Oxley Act and the Gramm-Leach-Bliley Act, as well as with international regulations such as Basel II, says TruSecure chairman and CEO John Becker, who will become CEO of the combined company. "It's about understanding your defensive posture," he says.

"There's big potential here," says Pete Lindstrom, research director at market-research company Spire Security. The combined company would have annual revenue of more than $160 million and about 4,000 customers. Terms of the stock deal weren't disclosed, but the companies expect it to close in a month. The new company will be able to sell PKI products and services from Betrusted and risk-management consulting from TruSecure, as well as their combined network-security-monitoring services, to companies in the United States, Europe, and Asia.

The merger follows a recent string of acquisitions in the field. Earlier this month, Symantec Corp. bought application security company @stake. In August, McAfee Inc. acquired consulting firm Foundstone for $86 million.

Cybertrust will be among the top five largest dedicated computer-security vendors, says John Pescatore, VP and research fellow at Gartner. But he questions how well Cybertrust's products and services will fit together. "Most of these services have done reasonably well standalone," he says. "If that's the case, why merge?"

Comment  | 
Print  | 
More Insights
IT's Reputation: What the Data Says
IT's Reputation: What the Data Says
InformationWeek's IT Perception Survey seeks to quantify how IT thinks it's doing versus how the business really views IT's performance in delivering services - and, more important, powering innovation. Our results suggest IT leaders should worry less about whether they're getting enough resources and more about the relationships they have with business unit peers.
Register for InformationWeek Newsletters
White Papers
Current Issue
InformationWeek Government Tech Digest Oct. 27, 2014
To meet obligations -- and avoid accusations of cover-up and incompetence -- federal agencies must get serious about digitizing records.
Video
Slideshows
Twitter Feed
InformationWeek Radio
Archived InformationWeek Radio
A roundup of the top stories and community news at InformationWeek.com.
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.