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RSA Security Buying Securant

RSA Security Inc. signed an agreement to buy authorization software vendor Securant Technologies Inc. for $136 million, the companies said Tuesday.

The companies expect to close the deal in a month.

Securant makes ClearTrust, and RSA hopes to use Securant's existing product to expand its position in the growing authorization market. RSA identifies two key engines for that growth: organizations expanding the number and types of users who access their networks, applications and Web sites, and organizations consolidating existing Web sites under a portal management system.

IDC predicts that market sector will grow at an annual compound rate of nearly 70 percent over the next four years. Other players in that category include Entrust, Oblix, Netegrity, Open-Networks, Entegrity, Baltimore Technologies and Symantec.

RSA currently sells two-factor authentication software, encryption software and digital certificate management systems and has a name closely associated with PKI technology. Securant's ClearTrust gives RSA software that allows corporations to control what authenticated users do or don't see once they have been authenticated.

For the short term, RSA projects that the acquisition of the privately held company to add $3 million to $4 million in revenues in Q3, $5 million to $7 million in Q4 and $35 million to $40 million in 2002.

About the Author

Scott Bekker is editor in chief of Redmond Channel Partner magazine.

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