NA throws down the Gauntlet with TIS

Acquisition Security software vendor raises bar for market.

Security software vendor Network Associates (NA) has announced the purchase of Trusted Information Systems (TIS), maker of the Gauntlet firewall, for $300 million in stock, in a bid to become a comprehensive supplier of security products and services.

Chairman and CEO of NA, Bill Larson, said the deal would raise the bar on what it means to be a security software provider.

He also quoted research data from the Computer Security Institute and Zona that put TIS' Gauntlet product in second place in the firewall league, behind FireWall-1 from CheckPoint Software. TIS also sells Gauntlet Global Virtual Private Networks and Stalker, an intrusion detection program.

'Being a point provider of antivirus software is no longer sufficient', Larson said, predicting a consolidation of the industry. 'Customers are looking for a single source for product, service and support,' he added.

TIS also has a strong consultancy arm, which NA hopes to use to enter into the services business. Larson said the firm's consultancy operation would be 'more the Oracle model than the EDS model', suggesting the company would offer integrated systems built around its own products.

The acquisition is still waiting for regulatory approval. According to Network Associates, the deal will be completed in 60 to 90 days.

Network Associates was formed on 1 December 1997, when antivirus vendor McAfee Associates merged with network security vendor Network General.

Network Associates reported a $612 million revenue and profit before charges of $132 million in 1997.