ActivCard buys Protocom for $21m plus shares

Merger signals demand for all-encompassing security

Merger signals demand for all-encompassing security

Smart card and identity management firm ActivCard has bought password solutions company Protocom for $21m and 1.65 million common stock shares.

Australia-based Protocom will become part of the Californian company when the deal closes in approximately one week's time.

Protocom's software requires users to remember only one 'strong' password for all applications they use. Their products are also used for DIY password resets - a task that can be time consuming for IT support teams.

Clive Longbottom, service director for analyst Quocirca, said the acquisition was typical of firms trying to take a more all-rounded approach to security. "Point solutions are becoming more of an issue than a solution. Security needs to be something holistic and that's why we're seeing a lot of mergers. A company now has to be more of a full player," he said.