IBM / Internet Security Systems

Computing giant IBM Corp. said Wednesday it was buying Internet Security Systems Inc. (ISS) for 1.3 billion dollars to expand its reach into secure online networks.

The Atlanta-based ISS says it helps to “proactively protect” its 11,000 customers, including some of the world’s leading companies and governments, against Internet threats across networks and servers.

“The acquisition is an important addition to IBM’s security and privacy services business,” the companies said in a joint statement.

“Together, IBM and ISS will help clients of all sizes preemptively stay a step ahead of targeted security threats or attacks.”

The companies said they expected to close the deal by the end of the year. IBM’s purchase price comes to 28 dollars per ISS share, a premium of about 8.0 percent on the security firm’s closing price Tuesday of 26 dollars.

In early trade Wednesday, ISS stock surged nearly 7.0 percent to 27.81 dollars. IBM shares were up 0.23 percent at 79.13 dollars.

(c) Khaleej Times