Computer Associates International Inc. (CA) (NYSE: CA) has shelled out $430 million for security specialist Netegrity in its latest attempt to bolster its security portfolio.
Waltham, Mass-based Netegritys products include the policy-based security software SiteMinder and its Web-services offering TransactionMinder. The company also offers IdentityMinder, a policy-based product for managing users and access to Web applications.
Controlling access to systems and applications is becoming a major headache for enterprises, especially given the advent of threats such as phishing, or online identity theft. Execs at CA obviously see security as something of a sweet-spot, having recently acquired anti-spyware firm PestPatrol and teaming up with BT Group plc (NYSE: BTY; London: BTA). (See CA Acquires PestPatrol and BT Partners With CA for Security.)
CA execs on a conference call earlier today waxed lyrical about the synergies between the two firms. However, CA admitted that there is currently overlap between the two companies user-provisioning technologies. We will rationalize our respective development groups after this deal will close, said one exec, probably while sharpening an axe.
The announcement also provides evidence of CAs intention to send a "business-as-usual" message to the market following its accounting scandal. The ink was barely dry on CAs agreement with the Department of Justice (DOJ) and Securities and Exchange Commission (SEC) when the Islandia, N.Y.-based firm announced a major restructuring program involving 800 job cuts (see CA Cuts 800 Jobs and CA's Mea Culpa).
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