IBM is going to pay close to $1 billion to pick up security company, Trusteer.
In a sign that IBM is taking security very seriously, this is its second largest acquisition of a security company after its 2006 purchase of Internet Security Systems for $1.3 billion.
Trusteer has offices in Boston and Tel Aviv, Israel. IBM said it planned to open a cyber security software lab at Trusteer’s offices in Tel Aviv, which will employ more than 200 researchers and developers. The lab will be in addition to other research and development facilities in Israel.
Trusteer competes with long-established security providers such as Symantec Corp., Intel Corp’s McAfee division and EMC Corp’s RSA security unit. Privately held competitors include FireEye, which has filed to go public, and Bromium.
“In founding Trusteer, I pulled together a team with strong skills in data security and programming,” said Trusteer founder and chief executive Mickey Boodaei.
Among other security fronts, Trusteer examines advanced malware and how it affects large organizations. “The moment we understood the problem and the limitations of existing solutions, we built a unique system to identify attacks,” Boodaei said.
“We concluded that one of the technology’s main applications is in preventing fraud carried out by taking over the end-user’s computer and carrying out online bank transactions – a kind of fraud that was causing hundreds of millions of dollars in losses to banks around the world at the time.”