Friday, 30 June 2006

EMC to Acquire RSA Security for USD 2.1 Bln

Data Storage company EMC Corp. has signed a definitive agreement to acquire RSA Security Inc. for USD 28 per share in cash or nearly USD 2.1 billion, net of RSA's existing cash balance. EMC said the acquisition is expected to be completed late in the third quarter or early in the fourth quarter of 2006.

"The combination of RSA’s leading security technology coupled with EMC’s best-in-class information infrastructure and financial resources will accelerate the integration of security into the information infrastructure," said Art Coviello, RSA CEO and President.

On a GAAP basis, EMC currently expects the acquisition of RSA will be dilutive by 3 cents per diluted share in 2007 and will not have a material impact on diluted earnings per share in 2008. On a non-GAAP basis, which excludes the impact of intangible amortization and stock option expense, EMC currently expects the acquisition will not have a material impact on diluted earnings per share in 2007 and will add to earnings by 3 cents per diluted share in 2008.

Upon completion of the acquisition, RSA will operate as EMC’s Information Security Division, headquartered in Bedford, Mass. Art Coviello will become an Executive Vice President of EMC and President of the division.