RSA Security Holders Approve Takeover
RSA Security Inc. said its shareholders approved the company's $2.1 billion acquisition by data storage provider EMC Corp.
- By The Associated Press
- September 15, 2006
RSA Security Inc., a provider of security software and hardware for networks, on Friday said its shareholders approved the company's $2.1 billion acquisition by data storage provider EMC Corp.
The transaction, which has cleared a regulatory review, was expected to be completed within two business days, Bedford-based RSA said.
RSA said holders of a majority of the company's stock voted in favor of the acquisition.
Hopkinton, Mass.-based EMC announced June 30 that it would acquire RSA for $2.1 billion, or $28 per share, in the biggest in a series of recent acquisitions by EMC to diversify beyond its core data-storage hardware business into storage-related software and services. EMC has spent $7 billion over the past three years on acquisitions.
RSA is a 20-year-old company with about 1,300 employees and $310 million in revenue last year, compared with 26,500 workers and nearly $10 billion in 2005 revenue at EMC.
RSA is known for an annual security conference that it stages, as well as millions of business card-sized "SecurID" tokens that display an ever-changing six-digit code computer users must type to gain access to networks.
Shares of RSA rose 5 cents to $27.96 in morning trading on the Nasdaq Stock Market, while shares of EMC climbed 6 cents to $11.43 on the New York Stock Exchange.