Integralis merger creates European security giant

The merger of UK-based Integralis Group into Germany's Articon has created the largest network and data security integrator in Europe.

The merger of UK-based Integralis Group into Germany's Articon has created the largest network and data security integrator in Europe.

The deal values Integralis at about £77m. The new company, Articon Integralis AG, will have an estimated turnover of £38.4m and is valued at £171m, but this may rise if the market takes into account the increase in revenue Integralis brings. Articon's market capitalisation is about £94m but Integralis offers three times the turnover of its German partner.

Integralis divisions include security product distributor Allasso and corporate reseller Integralis Network Systems, whose director of marketing and business development, Steve Webb, said a second public offering next year will provide the company with funds for further growth.

"We're the leading European company in a market that has hardly begun to grow. Ecommerce is going to make security a core function," he said.

Keith Humphries, analyst at EuroLan Research, agreed security is expected to boom, but said there are not many large security specialist systems integrators. "Security is still largely left to the network integrator," he said.

Caroline Martin, senior analyst at Datamonitor, said the European market for IT security services is estimated at about $1bn (£625m), growing to $2.5bn by 2003.

Bernie Dodwell, marketing manager at Allasso, said: "The immediate effect on our distribution business will be zero. In the longer term we will expand into European countries where Articon has a presence, such as the Czech Republic." Articon is committed to retaining and growing the trade-only distribution business, he said.

Webb said customers do not understand the importance of good security. "With money behind us, we'll be in able to grow the entire market," he claimed.