BAE buys cyber security firm Norkom

Defence industry giant to acquire Irish firm for €217m

Defence company BAE has agreed to buy cyber security firm Norkom, in a deal worth €217m (£183m), according to a report in the Financial Times today.

Irish firm Norkom is a supplier of security software to the financial services industry. The move is the latest in a string of cyber security deals by BAE, which bought UK company Detica in 2008 as well as security specialists in Denmark, the US and Australia.

BAE is not the only defence companies expanding into the cyber security space, with Boeing announcing an agreement to acquire analytics software provider Narus Networks in July last year, and Raytheon buying Trusted Computer Solutions in November.

Other non-defence cyber security acquisitions include SAP's purchase of its partner Secude's security software and related assets earlier this week. That deal is expected to close on February 1.

Similarly, Intel's purchase of cyber security firm McAfee, which was agreed in August last year, is currently being investigated by the European Commission.

The commission is concerned that Intel might embed elements of McAfee's virus fighting technology into its microprocessor chips giving it an unfair advantage over its rivals.