EMCs RSA acquisition
EMC has announced its impending acquisition of RSA Security for approximately
$2.1 billion. Under the agreements terms, EMC will pay $28 cash per share
in exchange for each share of RSA.
RSA is known for its token-based identity and access management tools across
the globe. The $2.1 billion merger agreement should put EMC in the forefront
especially in domains such as content management (Documentum) and virtualisation
This acquisition should help EMC on its way to become a full-fledged IT infrastructure
company. EMC has strategically picked up RSA to complement its enterprise security
expertise. This will also complement EMCs storage, virtualisation, content
management and business intelligence offerings. RSA is expected to add identity
and access management, encryption, and key management software expertise to
EMCs overall IT portfolio solution.
The acquisition is expected to be completed late in the third quarter or early
in the fourth quarter of 2006 subject to various closing conditions and regulatory
approvals. Upon completion of the acquisition, RSA will operate as EMCs
information security division, headquartered in Bedford. Art Coviello, CEO and
President, RSA, will take over as the Executive Vice-president of EMC and President
of the division.