IBM makes another software buy

IBM is buying US security and compliance testing software company Watchfire Corporation to boost its Tivoli product line.

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By  Michele Howe Published  June 7, 2007

IBM is buying US security and compliance testing software company Watchfire Corporation to boost its Tivoli product line.

IBM said the acquisition would complement its IBM Tivoli identity, access and compliance management software offerings and ISS by extending security and compliance testing as an integrated element of the application development lifecycle.

"Watchfire is a recognised industry leader in the security and compliance market that will further strengthen our ability to help customers mitigate risk by integrating security, quality testing and compliance testing requirements early in the software development process," IBM Rational Software general manager Danny Sabbah said.

Watchfire's offering include an AppScan vulnerability assessment tool, which scans web sites for vulnerabilities. The company has more than 800 customers worldwide.

The firm will be integrated into IBM's Rational software brand, the company said. Terms of the deal were not disclosed.

The acquisition is expected to close in the third quarter of 2007.

The deal is the latest signal of the importance that IBM is placing on its software division, which has been a strong engine of sales growth in recent quarters. CEO Sam Palmisano has spearheaded this software drive, buying 32 firms in just three years.

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