RSA Security announced Monday that it will acquire Cyota, a vendor of online security products, for $145 million.
RSA said in a statement that the transaction, which is expected to close within 30 days, will add a greater variety of security techniques to its arsenal.
The purchase is expected to add $22 million to $25 million in annual revenue, RSA said.
"Today, RSA Security is the leader in protecting online identities and digital assets. Through our combination with Cyota, RSA Security will become the leader in the protection of consumer identities and remote transactions," said Art Coviello, RSA president and chief executive officer.
"Our customers will benefit from enhanced flexibility, and consumers will also be able to enjoy – through their account providers – access to strong authentication and transaction protection solutions that fit their lifestyles and security needs."
RSA will purchase Cyota for up to $136 million in cash for the company's outstanding capital stock, $5.5 million to fund a three-year retention pool and at least $3.5 million for the assumption of all outstanding Cyota stock options, the company said Monday.
Naftali Bennett, co-founder and CEO of Cyota, said in a statement Monday that he was "excited to join forces with RSA, a world leader in security."
"I am confident that Cyota's people will continue to display the same kind of enthusiasm, rapid innovation and devoted customer service that has been our trademark in this industry."
George Waller, executive vice president of StrikeForce Technologies, a rival corporation, said his company had more identity protection capabilities than his two competitors combined.
The acquisition brings RSA closer to Federal Financial Institutions Examinations Council standards, Waller said.
"RSA did not have a full breadth of solutions," Waller said.
