EMC Corporation, a provider of information management and storage, and RSA Security Inc., a provider of protecting and managing identities and digital assets, have announced a definitive agreement for EMC to acquire RSA. Under the terms of the agreement, EMC will pay $28.00 per share in cash in exchange for each share of RSA and the assumption of outstanding options, for an aggregate purchase price of slightly less than $2.1 billion, net of RSA's existing cash balance.
The acquisition adds identity and access management solutions and encryption and key management software to EMC's security portfolio. The acquisition is expected to be completed late in the third quarter or early in the fourth quarter of 2006, subject to customary closing conditions and regulatory approvals. Upon completion of the acquisition, RSA will operate as EMC's Information Security Division, headquartered in Bedford, Mass. Art Coviello will become an EVP of EMC and president of the division.