August 21, 2013 0 Comments
IBM Purchases Israeli Security Firm
Israeli startup security firm Trusteer was acquired last week by IBM for a reported $800m to $1b. Trusteer specialises in anti-fraud products for financial services organisations. The startup also creates solutions to protect mobile devices and computers from phishing and other web-based attacks. Its list of clients includes Bank of America, NatWest, HSBC, ING Direct USA (now part of Capital One), RBS, eBay and PayPal.
An emerging trend in the investment and M&A programmes of large enterprises like Cisco or IBM, is acquiring smaller start-ups to enter new product markets rather than building these solutions in-house. Last month Cisco bought Sourcefire for a healthy $1.3 billion. Companies such as Trusteer make significant money from servicing their financial clients, but the big bucks for the founders of these companies come from mammoth and successful exits. It’s our opinion that IBM, Cisco, RSA appear to be on the prowl for innovative and disruptive technologies they can further scale.
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