For release: 03 Apr 2008
EDS Acquires UK-based Vistorm Holdings, a Leading Information Security Services Company
Acquisition Will Create One of the Largest Dedicated Information Assurance and Managed Security Services Firms In Europe
PLANO, Texas and LONDON, UK – EDS today announced it has acquired UK-based Vistorm Holdings Limited, a leading provider of information assurance and managed security services. Financial terms were not disclosed.
Vistorm is focused on provisioning information assurance and managed security services in the UK and globally and serves organizations of all sizes, particularly commercial and financial services firms. Vistorm will operate as a separate entity led by its existing management team with a direct sales channel to the market leveraging EDS' existing IT infrastructure, security and privacy capabilities. Vistorm will also retain its market-leading brand in IT security.
EDS will combine its existing capabilities in IT security in the UK into the new Vistorm entity. The combination of resources will create an organization with approximately 400 information security specialists in the EMEA market and make it a formidable European provider of information security services, as well as having industry leading tools, software platforms and methodologies in IT security.
Vistorm, founded in 1991 with annual revenues of approximately $100 million, offers a complete portfolio of information security services, including professional services and managed security services. The company has 220 employees and associates in the UK and serves a broad base of UK clients in a range of industries, including such leading companies as Royal Bank of Scotland, Nationwide and Balfour Beatty.
“The IT security market is a strategic priority area for EDS globally and the strong information security expertise of Vistorm reinforces EDS' existing capabilities in this critical and growing area,” said Bill Thomas, executive vice president of EDS' Europe, Middle East and Africa (EMEA) region. “The combination of Vistorm's industry-leading IT security portfolio of products and deep understanding of technology needs in security – together with EDS' global resources and demonstrated strengths in managing complex infrastructure and applications securely – will provide unmatched, end-to-end security solutions for our clients,” stated Thomas.
“We are delighted to be joining with EDS to become part of a global IT services leader. The combination will enable Vistorm to benefit from EDS' strong security and privacy capabilities, grow our client base and expand into new industries and markets. We will roll out our Information Assurance tools, IP, and capability globally whilst continuing to stay focused on being a specialist-service provider to our existing UK clients in a very important marketplace.” said Jim Kent, CEO of Vistorm.
“The transaction with Vistorm demonstrates EDS' commitment to this rapidly growing sector and our strategy to provide mission-critical security and privacy offerings,” continued Thomas. “Vistorm has an impressive track record of success and a strong, dynamic management team along with leverageable tools and software platforms that complement EDS' strategic approach to serving the security needs of our clients. A combined EDS and Vistorm organization will give EDS the size and scope it needs to gain excellent market coverage, deep subject matter expertise which can service enterprise-level clients, and the capabilities to compete for some of the world's largest security projects, particularly in key defense, government and financial sectors.”
According to IDC, the Worldwide Security Market is expected to double from $35.7 billion in 2006 to $71.8 billion by 2011 with a 15 percent CAGR (compounded annual growth rate) for the 2006-2011 forecast period. The Worldwide Security Services Market was valued at $17 billion in 2006 and is expected to grow to $37.9 billion in 2011, with a CAGR forecast for the 2006-2011 period of 17.4 percent.
“As security has become a critical business concern, many customers are looking for a holistic approach to secure their IT infrastructures. The Vistorm acquisition will significantly enhance EDS' existing IT security capabilities and enable them to provide leading Information Assurance and Managed Security Services to both existing and new customers,” said Irida Xheneti, Research Analyst, IT Security Services with IDC. “This as an important strategic acquisition that will significantly differentiate EDS in the marketplace.”
EDS works with government and commercial clients around the world to secure their critical information technology and assets. With more than 2,500 security, compliance, privacy and continuity professionals, EDS helps clients stay ahead of the changing threat landscape by using leading-edge intelligence and resources to design, configure, deploy and reduce risk with secure, compliant solutions. EDS manages more than nine million user accounts and secures one million applications and 2.5 billion lines of code globally.
About Vistorm
Founded in 1991, Vistorm is an information security services company delivering industry leading security solutions. It offers a complete portfolio of information security services delivered by specialist Professional and Managed Services teams. Vistorm's understanding of securing client sites, secure mobile working and secure application infrastructures, combined with its expertise in the management of security information, enables organisations to gain competitive advantage, whilst their information capital remains secure and compliant. Vistorm is headquartered in Daresbury, Cheshire, UK with 220 employees and associates in the UK. For further information please visit www.vistorm.com
The statements in this news release that are not historical statements, including statements regarding earnings and free cash flow, are forward-looking statements within the meaning of the federal securities laws. These statements are subject to numerous risks and uncertainties, many of which are beyond EDS' control, which could cause actual results to differ materially from such statements. For information concerning these risks and uncertainties, see EDS' 2008 Form 10-K. EDS disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
About EDS
EDS is a leading global technology services company delivering business solutions to its clients. EDS founded the information technology outsourcing industry 45 years ago. Today, EDS delivers a broad portfolio of information technology and business process outsourcing services to clients in the manufacturing, financial services, healthcare, communications, energy, transportation, and consumer and retail industries and to governments around the world. Learn more at eds.com.
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