This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Tech M&A: Security Targets to Watch

NEW YORK ( TheStreet) -- Even as IT spending kicks off to a slow start following the recession, M&A in tech is definitely not dead.

Analysts expect tech's major players, including IBM (IBM), H-P (HPQ) and EMC (EMC) to continue with the buying spree they started last year. What they're looking for in 2010: security firms, a sector led by the likes of McAfee (MFE).

"To all the stacked dominators -- the large guys like Oracle (ORCL), Microsoft (MSFT) and Cisco (CSCO) -- security, which is very relevant to their software and network infrastructure offerings, is a top priority," says Don More, a partner with New York investment bank Updata Advisors. "More and more of them are realizing that security and system maintenance should be in the same box."

More points specificially to H-P, which he says "lacks the core capability" of security expertise that would benefit the firm on its software side.

In terms of targets, McAfee has long been rumored a good buy for large tech firms, despite its $6.24 billion market cap that makes it an expensive grab. McAfee reported better-than-expected results for the fourth quarter, reporting revenue of $525.7 million, up from $424 million in the same period last year and well above analysts' forecast of $514.81 million.

Also a potential target is ArcSight, IT security's rising star, which sells devices for monitoring security threats across data centers.

Read on for two less familiar security firms rumored to be potential acquisitions.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
WBSN $24.72 0.04%
AAPL $132.54 0.00%
FB $80.54 0.00%
GOOG $540.11 0.00%
TSLA $247.73 0.00%

Markets

DOW 18,232.02 -53.72 -0.29%
S&P 500 2,126.06 -4.76 -0.22%
NASDAQ 5,089.3620 -1.4320 -0.03%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs