IBM has agreed to purchase security firm Trusteer with plans to open a cyber security software lab. Trusteer is an Israeli-based security-software maker that sells products that protect the staff and customers of financial institutions from hackers and threats that traditional desktop security software miss.
Backed by Israeli security entrepreneur Shlomo Kramer, Trusteer specializes in sniffing out malicious software on devices other than PCs, like smartphones. IBM highlighted the fact that Trusteer serves seven out of 10 of the largest banks in the US.
Terms of the deal were not disclosed although sources familiar with the plans suggest the acquisition is valued between $800 million and $1 billion. As per the deal, IBM will create the aforementioned cyber security software lab in Israel staffed by more than 200 researchers from both companies.
In an interview on the subject, general manager of IBM’s security systems division Brendan Hannigan said most of the pressing problems which are facing their clients today in security are related to malware. He said Trusteer had a strong technology that they didn’t have within their division.
On the opposite end of the spectrum, Trusteer chief executive officer Mickey Boodaei said his company will be able to use IBM’s sales network to distribute their products to more customers.
Shares in IBM dropped 0.9 percent to $185.79 on the news and have fallen another 0.03 percent in after hours trading as of writing.