Thursday, April 20, 2006

Novell Buys e-Security: $72M

Novell acquired e-Security, a developer of identity management and compliance-monitoring systems, Wednesday for $72 million, in an effort to improve the Linux provider’s abilities at network security and event reporting.

The Waltham, Massachusetts-based company aims to enhance its identity and systems management with the acquisition by giving its customers a single view of security and compliance activities through the Sentinel 5 product that it will inherit from e-Security and will begin selling in May.

Security and identity authentication have become important issues for network administrators who are struggling to keep their networks from being attacked or from accidentally exposing the private information of customers.

“An acquisition to bolster Novell’s security presence makes sense, given this is one of the initiatives that has been growing in the recent past,” wrote SunTrust Robinson Humphrey analysts Terry Tillman and Tom Kight in a research note.

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