RSA to acquire Securant Technologies
RSA Security, which makes security products used to protect and manage access to computer systems, on Tuesday said it would acquire privately held Securant Technologies for $136.5 million in cash, to add authorization technology to its product mix.
RSA's products ensure the authenticity of people, devices and transactions. With Securant's technology, it now will be able to offer products that control what those users see or do once they have been authenticated.
RSA expects the deal to give it a strong presence in the authorization market segment, which research firm IDC expects to grow at a compound annual rate of nearly 70 percent over the next four years.
RSA Security, based here, said it expects the deal to add about $3 million to $4 million to revenue in its core operating business in the third quarter, and about $5 million to $7 million in revenue in the fourth quarter. It will add about $35 million to $40 million in revenues in 2002.
The company expects the deal will hurt third-quarter earnings in its core operating business by about 1 cent to 3 cents a share. In the fourth quarter, it could add up to 2 cents a share to earnings, and about 5 cents a share to 8 cents a share to earnings in 2002, excluding goodwill amortization.
