Philippine IPVG buys U.S. security firm

One month after its failed bid to acquire a BPO firm, IPVG forks out US$10.5 million to acquire U.S.-based security services provider Prolexic.
Written by Joel D. Pinaroc, Contributor on

PHILIPPINES--Local technology firm IPVG has acquired U.S.-based security services provider Prolexic Technologies for US$10.5 million, continuing its aggressive plans to expand its operations.

In a statement released Friday, IPVG said it has initiated a stock purchase agreement with Prolexic stockholders to purchase 100 percent of the company's capital stock. The acquisition comes several weeks after IPVG failed to buy out Nasdaq-listed PeopleSupport with a US$355-million all-cash offer.

IPVG said the acquisition of Prolexic, which specializes in managed security services that include distributed denial of service (DDoS) mitigation, "represents IPVG's roadmap of growing the company in key areas in the IP domain and global market." In DDoS attacks, hackers hijack a network of computers--or botnet--to send a large number of packets to a site, in a bid to crash the server due to the abnormally high bandwidth usage.

The company said it can now offer "a unique DDoS protection value proposition for its regional data center infrastructure customers". IPVG CEO Enrique Y. Gonzalez said in the statement: "The acquisition of Prolexic takes IPVG's communications business global.

"With Prolexic, we now are positioned as the leading DDoS mitigation provider in the world with operations in the United States, Latin America, Europe and Asia," he said. "As it gets easier and cheaper to launch DDoS attacks, the Internet security requirements for the enterprise market for best-of-breed mitigation services will continue to increase."

Prolexic's global security operations span Europe, the United States and Asia, according to the company, adding that the newly-acquired entity will be integrated with IP-Converge Data Center, a subsidiary of IPVG.

Prolexic said it has successfully prevented DDoS attacks, which sizes ranged from 100Mbps to over 2Gbps, that would have otherwise cost IPVG customers to lose almost US$1 million in lost bandwidth and business opportunities.

In July last year, IPVG said it would release up to 100 million shares in an attempt to raise some US$10.9 million to finance its domestic and overseas expansion plans.

Joel D. Pinaroc is a freelance IT writer based in the Philippines.

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