Report: IBM in talks to buy Fortinet

Big Blue may have been in talks with network security vendor for at least six weeks, according to Bloomberg story

Sam Palmisano has indicated that IBM could spend $20bn on acquisitions over five years

Network security vendor Fortinet has received a takeover approach from IBM, according to a Bloomberg report this morning.

Big Blue chief executive Sam Palmisano recently indicated the vendor is planning to spend $20bn (£12.5bn) on acquisitions in the next five years and talks with Fortinet have reportedly been going on for six to eight weeks.

According to Bloomberg, one person close to events said talks between Fortinet and IBM may be at an advanced stage, although any deal could yet unravel.

This comes shortly after Fortinet posted a 29 per cent rise in quarterly sales and almost doubled net profit to $14m. The unified threat management specialist’s market cap stands at $2.14bn.

An analyst at Pund-IT quoted in the story said Fortinet’s focus on enterprises, service providers and government bodies would map well against IBM’s client base.

Both firms refused to comment to Bloomberg.