Canberra security company M5 Networks has been acquired by US defence contractor Northrop Grumman.
Terms of the deal haven’t been disclosed, but Northrop Grumman says “The acquisition is not material to Northrop Grumman's 2012 financial outlook” which means it is unlikely to involve colossal sums. M5’s team will remain in place and the company will retain its identity.
The acquisition is being positioned as a beach head for Northrop Grumman in Australia, with a statement saying it "… enhances our ability to provide innovative, agile and proven cybersecurity and communication solutions to Australian customers," according to Wes Bush, Northrop Grumman chairman, chief executive officer and president.
Canned quotes from M5 managing director Matthew Wilson support the beach head positioning, as he says “We expect that as part of Northrop Grumman, our customers also will benefit from the cybersecurity leadership and extensive resources that Northrop Grumman can bring to M5 Network Security and its employees.
We suspect the US company also like the looks of M5’s secure comms hardware, which could be just the thing for some of its customers. ®