CA continues cloud buying spree with $200 mil Arcot buy

IT management software provider CA Technologies has announced that it plans to acquire authentication solutions provider Arcot for US$200 million. 

The acquisition, expected to close by the end of September, will expand CA's existing security portfolio by adding fraud prevention and advanced authentication functionality to its existing identity and access management (IAM) offerings. Additionally, the acquisition will allow CA to accelerate its delivery of identity and access management (IAM) solutions from the cloud, CA said in a statement.

Dave Hansen, general manager for the security business at CA Technologies, told SCMagazineUS.com that customers want to take advantage of the cloud but are concerned about security and want authentication to ensure the right people are accessing the right information.

“People are starting to realise – and this [acquisition] reinforces it – that cloud computing is here, and people want to take more advantage of it and feel like they have the security and control around it to deliver a reliable service,” Hansen said.

Founded in 1997, Arcot is a provider of authentication and fraud prevention solutions that can be delivered as cloud services or deployed on premise. Arcot's technology is used to help prevent fraudulent transactions for about one million credit card transactions each day. CA said that combining Arcot's technology with its SiteMinder web access management portfolio will enable the company to further help customers reduce risk, support regulatory compliance, and confidentially secure business transitions. 

Arcot's operations and approximately 165 employees will become part of CA's security business.
The acquisition will allow CA to compete with RSA, which also provides advanced authentication solutions, Hansen said.

This is the seventh cloud computing acquisition for CA in the past 14 months.

See original article on scmagazineus.com