IT security firms TruSecure and Betrusted are to merge in order to create the "biggest security services company in the world". Ubizen, Betrusted's mostly owned subsidiary, is also folding into the new company, which is to be called Cybertrust. Subject to regulatory approval the agreement is expected to finalise within the next 30 days.
Cybertrust will have 1,000 employees, 4,000 clients worldwide and $160m in annual revenue, making it the tenth biggest IT security firm in the world and the biggest pure-play services firm, according to John Holland, SVP of International Operations at TruSecure. Both TruSecure and Betrusted are privately held so no valuation has been placed on the deal. The merger is been driven by the need for security service companies to service clients around the world, Holland explained. "IT security firms are converging because they need to achieve critical mass."
Cybertrust will combine identity management services from Betrusted, risk management and compliance services from TruSecure along with managed security and computer forensics services from Ubizen (a majority-owned subsidiary of Betrusted). The company will compete with Symantec, IT integrators and professional services firms in various segments of its business.
The IT security biz has been awash with mergers and acquisitions in recent weeks. Last week Symantec bought security services firms @stake and smaller UK-based firm LIRIC Associates. Last month McAfee announced a deal to acquire vulnerability management company Foundstone for $86m cash. ®