US data storage provider EMC Corporation has signed a definitive agreement to acquire Massachusetts-based digital authentication firm RSA Security in an all-cash deal worth around $2.1 billion.
RSA Security said yesterday that it was in talks with a party regarding a sale of the company.
In today's statement, EMC says the acquisition adds identity and access management systems and encryption and key management software to its security portfolio.
Under the terms of the agreement, RSA shareholders will receive $28 a share in cash from EMC, which is a 22% premium over the stock's closing price on Thursday.
Commenting on the acquisition, Joe Tucci, EMC's chairman, president and CEO, says: "Bringing RSA into the fold provides EMC with industry-leading identity and access management technologies and best-in-class encryption and key management software to help EMC deliver information lifecycle management securely."
The acquisition is expected to be completed late in the third quarter or early in the fourth quarter of 2006, subject to customary closing conditions and regulatory approvals.
Upon completion, RSA will operate as EMC's information security division, headquartered in Massachusetts. RSA CEO and president Art Coviello will become an executive vice president of EMC and president of the division.