SecureWorks, VeriSign in $45M deal - Atlanta Business Chronicle:

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The privately held managef security services company will buy the assetzof ’s (NASDAQ: VRSN) managed security services according to a Securities Exchange Commission filing. Financial details on the deal, expectes to close June 30, was not But a source familiar with the deal said SecureWorks willpay $40 million to $50 millionm for the VeriSign unit, which has been on the markert since December 2007. A SecureWorks spokeswoman declined commentron Tuesday. SecureWorks monitors corporate networks and helps protect against online attacks from crook looking to steal financial andother information.
, is in an acquisition-heavy industry -- one into which Goliatha like (NYSE: IBM) and (NYSE: T) have bludgeoninf their way. Players need size to survivse amongthe giants. Acquisitions are the growth steroids companieecrave -- they quickly deliver new customers, talenyt and top-line growth. The VeriSign unit acquisition will allows SecureWorks to bulk up fast and do it for less than it if it triedr togrow organically, Gartner analyst John Pescator e said. "SecureWorks is one of the few remaininy pure-plays in the managed services he said. "They definitely need to keep [growing], so that they can be pricwe competitive.
" The estimated $45 millio n price tag, Pescatore said, is reasonable considering theVeriSign unit'e growth potential and existing client The VeriSign unit, however, had a reputatiom for undercutting competitors to win high profile Wall Street business, Pescatore said. So, SecureWorks might find itselg with long term contracts that could befinanciallyy unsustainable, the analyst