EMC to buy RSA Security for $2.1bn

Data storage vendor EMC has confirmed its intention to acquire RSA security for $2.1bn.

RSA is best known for digital ID devices for enterprises as well as identity and access management technologies.

The acquisition will expand EMC’s security portfolio and see RSA operating as the company’s information security division.

EMC has an annual turnover of $10bn and RSA $300m though RSA has a relatively high profile and is behind the largest event in the security industry – the RSA Security conference.

The acqusition follows the high profile purchase of storage management firm Veritas by security vendor Syamntec last year.

EMC needs to integrate data storage and security into its business in order to grow, according to the company's chief executive Joe Tucci.

‘The whole name of the game here is how you build continued value for the long shot,’ said Tucci.

EMC plans to grow RSA sales to $500m by 2007, he says.

During a conference call with financial analysts Tucci defended the company’s decision to buy RSA at what was suggested by some analysts as an inflated price.

‘This was critical technology. I am telling you this was very competitive. Not having it would have put us at a severe disadvantage, and others that might have bought it would not have wanted to share it with us,’ said Tucci.

The acquisition is expected to be completed in late 2006.

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