Tuesday, September 19, 2006

EMC acquires Network Intelligence

"EMC announced Monday that it has acquired IT security company Network Intelligence, in a deal valued at about $175 million. The storage specialist's announcement comes on the heels of its $2.1 billion buyout of security vendor RSA Security. That deal and the Network Intelligence purchase provide EMC with the foundation to launch its new information security division. " CNET News.com

Notes: This is a solid deal for all investors, most notably Ascent VP who led the first and second rounds in March 2002, July 2003 respectively. Other investors include JMI, Egan, Bain, Castile. Total raise: $28M. Company raised 2 bridge rounds in June and October before raising a slight up round in Feb 05 from Bain and Castile.

NI can expect up to $250m if metrics are met. Even at a $175M acquisition value, it is a 7x multiple to an estimated last year revenue of $25M. NI competes with Intellitactics, Netmuse and lists many customers in the financial services sector. EMC gains an appliance- based security event management solution targetting automated compliance and security information.

- Our Mar 05 post on NI
- EMC Acquires Network Intelligence Line 56 News
- EMC buys Network Intelligence BusinessWeek
- In Depth: The Transformation Of EMC InformationWeek

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