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HOPKINTON
SEPTEMBER 19, 2006
EMC Corporation today announced the acquisition of Massachusetts-based
Network Intelligence, a security information and event management company, in a
cash transaction valued at approximately $175 million.
It also announced that it had completed the acquisition of
Massachusetts-based RSA Security.
Under the terms of the definitive agreement announced on June 29, 2006, EMC
paid $28.00 per share in cash in exchange for each outstanding share of RSA and
the assumption of outstanding options for a total purchase price of
approximately $2.1 billion, net of RSA's existing cash balance. RSA Security
stockholders approved the acquisition on Thursday, September 14, 2006.
The acquisition of RSA and Network Intelligence together will create a new
information security division of EMC.
RSA Security adds industry-leading enterprise identity and access management
products, consumer identity and fraud protection solutions, encryption and key
management software and tremendous security knowledge and expertise to EMC's
expanding, information-centric security product and service portfolio.
Network Intelligence advances EMC's information-centric security strategy
by providing tools that enable companies to collect, monitor, analyze and report
on security event-related activity throughout the IT infrastructure – in the
network, in enterprise applications, on mainframes, on desktops, in storage
devices or elsewhere.
Joe Tucci, chairman, president and CEO, EMC, said, “The additions of RSA
and Network Intelligence to the EMC family enable us to execute on our
information-centric security strategy to help organizations around the world
secure their information throughout its lifecycle and reduce the associated cost
of regulatory compliance.”
Operating under the RSA brand, EMC's security division will be
headquartered in Bedford, Massachusetts and led by Art Coviello, the former CEO
of RSA Security. Coviello is an Executive Vice President of EMC and the
President of RSA, reporting directly to Tucci.
EMC also announced the establishment of a $2.2 billion short-term, unsecured
credit facility, which it is using to pay for the RSA acquisition. David Goulden,
executive vice president and chief financial officer, EMC, said, “The
availability of this credit facility benefits EMC because it enables us to
complete the acquisition while avoiding the cost of monetizing our short term
investments ahead of normal maturity, providing a very efficient way for us to
utilize the strength of our balance sheet.”
Additionally, EMC reaffirmed its commitment to spend at least $3 billion to
repurchase EMC shares during 2006.
Immediately following the announcement of EMC's intent to acquire RSA
Security, the two companies assembled cross-functional teams to develop
extensive integration plans designed to maximize business leverage and
efficiencies.
Key areas of integration includes organisation, sales, service and
distribution, and R&D. Page(s) 1
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