TruSecure, Betrusted Merge To Create Cybertrust

The merger agreement, which has yet to be approved, would create "the world's largest privately held information security company," with 1,000 employees, 4,000 clients and US$160 million in annual revenue, according to a press release.

Security experts said the merger was a strong deal for both TruSecure, which has struggled through many management changes in recent years, and for Betrusted. The merger extends both the geographic and service reach of the new company. The new company will also include Betrusted subsidiary Ubizen, a Belgian provider of filtering software.

Combining Competencies

In announcing the merger, the companies said Cybertrust would fold the specialties of each company -- risk management and compliance from TruSecure, identity management from Betrusted and intrusion detection and prevention from Ubizen.

"Combining these competencies, Cybertrust is uniquely positioned to create a level of trust for clients that addresses their vulnerability issues, evolving regulatory compliance requirements and identity management needs," the companies said in a statement.

Yankee Group vice president Matthew Kovar said the merger has created a "global security management leader" capable of providing services in threats and vulnerability, compliance and identity management.

Threats and Regulations

Forrester research director Michael Rasmussen told TechNewsWorld that the new company reflects the growing importance of information risk management, which differs from traditional IT security.

"Information security is really starting to mature to a risk management function," Rasmussen said, referring to increased regulation on handling and holding data.

Rasmussen explained that while the increased focus on risk management has bolstered IT security, it is also moving information security away from CIOs who are continuing to deal with "IT security, the technology-side bits and bytes."

"It's helping IT security, but it's also separating IT security from information security and risk management in some cases," Rasmussen said.

Worldwide Issues

Cybertrust also cited increasing threats and regulations such as the Health Insurance Portability and Accountability Act (HIPPA), Gramm-Leach-Bliley Act (GLBA), Sarbanes-Oxley Act, Basel II and European Union directives on data protection.

Cybertrust said industry and governments will be spending billions of dollars on the accessibility and security of information based on the security risks and regulations from various governments.

Rasmussen agreed, adding that the merger will give the companies the larger reach to take advantage of the growing security and risk management market.

"A lot of those challenges are international challenges, not just U.S. challenges," Rasmussen said. "This merger really helps them expand in Europe."

Continuity and Consolidation

Rasmussen said that while TruSecure has struggled with continual management changes over the last few years, the company's risk management specialty adds a lot of strength to the Cybertrust merger.

Although the deal is only the latest in a long string of consolidation in security, Rasmussen said there is more to come as larger players including Symantec (Nasdaq: SYMC) , McAfee , Computer Associates and others continue to acquire smaller, "point specific" security services.

Rasmussen said IT customers generally appreciate the consolidated services but still piece together their own security stances using different providers based on needs.

"[Customers] like the menu that providers are offering, but they still like to choose a la carte," Rasmussen said. "It doesn't necessarily mean one vendor's a shoe-in for any organization."