HP Sells Network Security Business TippingPoint To Trend Micro For $300M
Cyber security company Trend Micro to buy HP unit for $300 million.
Trend Micro International, a major provider of security software which makes its US headquarters in Irving, said Wednesday it has signed a definitive agreement to acquire HP TippingPoint, and Austin-based operation that offers “next-generation intrusion prevention systems and related network security” options.On the heels of Dell buying EMC for $67 billion and Western Digital buying SanDisk for $19 billion, HP is selling off its TippingPoint network security business to TrendMicro for $300 million.Trend Micro is beefing up its security portfolio to better compete with rivals like Symantec and Intel Security (McAfee) by purchasing HP TippingPoint.
Tipping Point makes devices that protect networks against attacks, including a firewall and a device that can run suspicious email attachments and apps in a safe way to see if they are malware or legit.Today’s “borderless” enterprises are barraged by increasingly complex threats, and organizations must be prepared to efficiently prevent, detect and respond to modern threats that circumvent traditional security. The deal, valued at about $300 million, boosts Trend Micro’s ability to detect intrusions soon and to offer “threat defense solutions spanning endpoints, network, data center and the cloud,” the company said in a release. TippingPoint is a provider of next-generation intrusion systems and network security solutions, and HP says that in future it will resell network security services from partners (including TrendMicro) rather than own its own assets. The approximately $300 million (Dh1.1 billion) agreement encompasses security technology, intellectual property, industry expertise, as well as a large, loyal enterprise customer base.
This is compounded by the increase of targeted attacks and advanced threats that bypass traditional controls, leveraging internal networks to access and monetize sensitive data, communications and intellectual property. “To face this problem, organizations need a layered threat defense working seamlessly across the enterprise to address threats before, during and after an attack,” said Eva Chen, CEO, Trend Micro. “As an ideal complement to our market-leading protection for data centers and endpoints1, this new next-generation network defense solution combines our best-in-class network breach detection system2, with proven intrusion prevention and response capabilities from TippingPoint. The move comes in advance of HP completing a break-up of its business into PC and corporate services, a move it announced last year would be complete by the end of this fiscal year. A network equipment company called 3Com bought it in January 2005 for for $US442 million and it landed at HP when HP bought 3Com in 2010 for about $US2.7 billion. Given our tenure with both HP and TippingPoint technology, we are excited about the agility of this acquisition and the value it will create for customers.” Long before the acquisition, The Register said HP’s TippingPoint and Trend Micro had a strategic partner relationship.
It calls its growth areas “transform” (moving enterprises to client computing, “protect” (security), “enable” (support for apps/mobile apps) and “empower” (big data/analytics). For HP, the decision to divest TippingPoint is part of a larger reorganization that will see it split into two companies: Hewlett-Packard Enterprise, which will sell IT solutions and services, and HP Inc., which will sell hardware such as PCs and printers. However, there’s a lot of competition in the market where Tipping Point operates, from Cisco to Palo Alto Networks, and Tipping Point wasn’t considered a leader in its market, according to Gartner.
Another benefit is the Zero Day Initiative, which has responsibly disclosed more zero-day vulnerabilities than all competitors combined through the diligence and expertise of an extensive community of researchers. But at the same time, as the space becomes more sophisticated, it looks like we may see yet more companies emerge that focus just on security rather than trying to offer a full stack of IT services.
However, it will continue to offer enterprise security solutions under several brands, including HP Fortify, HP Data Security, Aruba Networks, HP ArcSight, and HP Secure Access and Continuity Solutions. Plus, in a blog post, HP was pretty clear that it wanted the money so it can go out and invest in up-and-coming areas of security, “TippingPoint has been an important component of our security offering but we have decided to partner in network security as opposed to own so we can invest in other areas of our security portfolio.”
This unique expertise and ability will work in concert with the expansive resources of the Trend Micro Smart Protection Network and threat research teams to help ensure market leading detection rates. Built on 26 years of experience, our solutions for consumers, businesses and governments provide layered data security to protect information on mobile devices, endpoints, gateways, servers and the cloud. Trend Micro enables the smart protection of information, with innovative security technology that is simple to deploy and manage, and fits an evolving ecosystem.
All of our solutions are powered by cloud-based global threat intelligence, the Trend Micro™ Smart Protection Network™ infrastructure, and are supported by over 1,200 threat experts around the globe. These forward-looking statements are based on management’s current assumptions and beliefs in light of the information currently available to it, but involve known and unknown risks and uncertainties.
These factors include: that we may not be able to successfully implement the plans, strategies and objectives of management for future operations, including the execution of integration strategies Image with caption: “Trend Micro Canada (CNW Group/Trend Micro Canada) (CNW Group/Trend Micro Canada)”.
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