With tech vendors available at bargain-basement prices, Symantec Corp. went shopping last week. The security software and services company spent $355 million in cash to beef up its product line and accelerate its move into managed-security services.

Symantec spent $145 million to buy Riptech Inc., a managed-security services provider with 500 clients in 40 countries; $135 million to acquire intrusion-detection software maker Recourse Technologies Inc., known for its ManHunt intrusion-detection system application; and $75 million for privately held threat-management and security-alert vendor SecurityFocus.

"Symantec is clearly strengthening its weakness in network-based intrusion-detection systems and may very well dominate early warning and threat management," says Pete Lindstrom, director of security strategies at analyst firm Hurwitz Group. The acquisitions will pressure rival Internet Security Systems Inc., because it lacks an enterprise-class firewall and antivirus software, which could place it at a disadvantage if customers decide to use one vendor for a full suite of security products, he says.

Symantec's detection system, NetProwler, has been a "disappointment" in the marketplace, CEO John Thompson says. Recourse's ManHunt, which operates at gigabit speeds, will improve Symantec's market position and is faster than most competing products, Thompson adds. Analysts estimate that about 150 companies use ManHunt.

Offering a full range of security products and services hasn't proven to be a successful business model in the past, Gartner security analyst John Pescatore says. Internet Security Systems has had difficulty being both a maker of security products and a provider of security services, he says, and Symantec may face the same problem. "They seem to want to be a one-stop shop for security, without a clear sense of how all of these products and services will be integrated," he says. "I don't think companies are looking for a one-stop security department store. They still buy best of breed."

Symantec last week reported results for its first quarter ending June 30. The company earned $56.6 million, compared with a net loss of $21.2 million for the same period last year. It posted revenue of $316 million, an increase of 39% compared with the year-ago quarter.