KEYW Corp., an information security vendor that focuses on federal intelligence agencies and defense contractors, Thursday announced an agreement to buy SIEM vendor Sensage Inc.
Under the deal, Hanover, Md.-based KEYW will pay $18 million in cash and $16.5 million in KEYW common stock to acquire Redwood City, Calif.-based Sensage.
KEYW executives said they plan to continue to sell the Sensage product line, as well as integrate the Sensage technology into its cyber awareness and response platform, Project G.
"We acquired [Sensage] for their disruptive technology, commercial experience, strong customer base and good leadership," Leonard Moodispaw, KEYW CEO and president, said in a conference call late Thursday with financial analysts.
Project G is still in an early adopter phase, Moodispaw said, but has strong demand. "Sensage accelerates our ability to respond to that demand," he said. Availability for Project G is scheduled for early next year.
"Cyber awareness begins with the ability to absorb and relate large quantities of cyber operations and security data within an enterprise," Moodispaw said during a prepared statement. "Today these data overwhelm most organizations' capabilities to observe and respond to hostile activity within their network environments until it is too late. By joining forces, KEYW and Sensage will offer a new level of cyber awareness to both commercial and government markets."
In July, when KEYW announced commercial testing of Project G, the company said the purpose of the platform is "to find, fix and finish malicious cyberthreats within customers' networks through the use of automated tools and continuous updates to cyberthreat profiles and alert levels."
The SIEM market has experienced considerable consolidation recently. In April, integration software company TIBCO Software announced that it inked a deal to acquire LogLogic. Last fall, IBM bought SIEM vendor Q1 Labs and McAfee acquired NitroSecurity. SolarWinds, an IT management software company bought TriGeo, a SIEM provider that targeted midsize companies. In 2010, HP bought Arcsight and Trustwave acquired Intellitactics.
The KEYW-Sensage deal is expected to close in October.