) recently acquired Aveksa Inc., a Mass.-based security &
identity management software provider. However, the financial
details of the deal were not available. The current acquisition
will be integrated into EMC's RSA security division.
RSA offers security solutions, including enterprise
governance, risk and compliance, data loss prevention, security
information management, continuous network monitoring and fraud
protection, to businesses. The segment's products also encompass
identity management and protection, which include identity
assurance and access control, encryption and key management.
Aveksa provides cloud-based identity management solutions to
enable businesses to regulate access to their corporate networks
and applications. This ensures secured data management and better
Aveksa's clientele includes companies such as
), Daimler Financial Services and Zions Bank.
The acquisition will strengthen EMC's security division and
better position it in the cloud-based security solutions market.
It will also enable the company to upsell and cross-sell its
products into Aveksa's customer base.
EMC has been building its security portfolio through the
acquisition of companies such as NetWitness and Silver Tail.
Moreover, the RSA division has been performing well. In the last
reported quarter, the RSA division reported a 12.5%
EMC's aggressive acquisition strategy has been largely
responsible for the company's positioning. The company expects to
enhance its presence in the emerging markets of cloud computing,
big data, mobile and security applications through
We believe that the most-recent acquisition will provide EMC a
significant competitive edge over companies like
International Business Machines Corp.
However, a sluggish IT spending outlook will continue to keep
margins under pressure in the near term.
Currently, EMC has a Zacks Rank #2 (Buy).
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