Deal: IBM buys ISS

IBM confirmed the worst kept secret in security-land this AM buy acquiring ISS for $28/share. Only a 6% premium to yesterday's closing price - but about 50% higher than the stock was trading before the rumors started.

Press release is here.

It's an interesting deal since IBM has been dabbling in security but hasn't really been focused on it. It also seems that the products business is going to be hung out to dry. ISS will become a business unit under the Global Services umbrella. The "software" products will be integrated into IBM Tivoli stuff (not sure what that means), but what about the hardware?

Is Proventia dead? If you are a Proventia customer (or looking at the product), then it's in your best interest to defer purchase until the integration plans and product roadmap crystallize. There will be a lot of uncertainty until the deal closes, which is another reason to defer purchases.

Another open question is what will become of ISS' management team. It's not like IBM keeps many of the senior guys in their big acquisitions, so maybe this is Tom Noonan's opportunity to ride off into the sunset.

If they are having a conference call, I'll listen in on that and do a more detailed post later. Just wanted everyone to get the news hot off the presses!