Symantec Takes $370 Million Plunge Into Encryption Market.
Symantec today placed a $370 million bet that encryption will play a key role in solving ving enterprises' future security problems.
In a single announcement
, the security giant said it is acquiring PGP Corp. -- one of the industry's oldest and best-known enterprise email and data encryption tool vendors -- as well as GuardianEdge, which makes encryption tools for endpoint devices, such as laptops, smartphones, and portable storage devices.
Symantec will pay $300 million in cash for PGP and $70 million in cash for GuardianEdge.
Although it has built a huge business on security tools such as antivirus software and data leak protection, Symantec previously had not placed a high priority on encryption. Today's acquisitions show the company is making a shift in those priorities.
"Encryption technology is an important element of an information-centric security solution, as critical information is increasingly on mobile devices and in the cloud," the company said in a statement. "State and national governments are enacting more stringent and costly compliance mandates, such as the HITECH and UK Data Protection Acts, which are driving the need to encrypt sensitive information and protect an individual's privacy. Also, the increased costs and frequency of data breaches are driving the adoption of encryption as companies strive to mitigate risk.
"By bringing together PGP and GuardianEdge's standards-based encryption capabilities for full-disk, removable media, email, file, folder and smartphone, with Symantec's endpoint security, data loss prevention and gateway security offerings, Symantec will have the broadest set of integrated data protection solutions. This unique portfolio will address the data protection needs of all major customer segments from the largest enterprises and governments to small businesses and individuals."
Industry analysts generally praised the acquisition