CA acquires Arcot Systems for SaaS ID management in US$200m deal

Tags: Arcot Systems, CA Technologies, identity management, merger and acquisition, SaaS

CA Technologies announced plans to acquire Arcot Systems in a US$200 million deal that CA said could help it provide cloud-based identity and access management (IAM) technologies.

Arcot is a US-based identity management company that offer both on premise and a Software-as-a-Service model for its IAM software. It provides multi-factor authentication for web-based credit card purchases and authentication for banks and virtual private network authentication for enterprises.

CA competes head-on with IBM, Microsoft, Novell, RSA and Sun Microsystems in the IAM market. The company has had a longstanding partnership with Arcot to offer CA customers web access management capabilities. Other vendors in the market that offer web-based services include Entrust and TriCipher.

Securing web-based transactions

Dave Hansen, general manager for the security business at CA Technologies said the acquisition extends CA's IAM portfolio by helping enterprises secure web-based transactions. Hansen said CA's strategy is to provide IAM software that supports cloud applications and services and enable authentication and identity management from the cloud.

Hansen said CA intends to grow Arcot's e-commerce transaction business as well as improving sales to managed service providers that serve fledgling businesses. There is also synergy between the two companies, with both firms having similar customers in the financial industry. Companies can combine software from Arcot with IAM technologies from CA, Hansen said.

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