Internet Security Firm Buys Associate
Kopecki, Dawn, The Washington Times (Washington, DC)
A Rockville-based manufacturer of Internet security software will buy a smaller associate for about $250 million in stock, making it one of the nation's largest creators of security-software programs for corporate computer networks.
The purchase announced yesterday by Axent Technologies Inc. is the latest in an industry that is booming - and consolidating.
The push from retailers to sell on line has fueled what used to be an obscure industry. Internet security sales have skyrocketed as retailers feed the frenzy to cash in on cybersales.
Sales of data-security equipment are expected to swell to $5.5 billion by 2000 from less than $1 billion in 1996, according to industry analysts.
"We've gone from a time only several years ago where you had a handful of companies in software security. Now you have about 600 companies, and all of those people are not going to make it," said Bernard Dorshow, an analyst for the Chapman Co. in Baltimore.
Analysts predict Axent will have annual revenues of about $60 million in 1997. That's behind industry leaders Security Dynamics Inc. and Checkpoint Software Technologies Ltd., which analysts predict this year will generate about $130 million and $70 million in revenues, respectively.
Axent and Raptor officials predict combined company sales in 1998 of more than $90 million. …