Looking to Secure Repeat Sales, ISS Group Will Acquire Netrex

SAN FRANCISCO -- Internet Security Systems (ISSX Quote), which made its name building alarm systems for computer networks, is ready to play security guard as well.

ISS Group, parent of Internet Security Systems, is acquiring Netrex Secure Solutions for stock worth $57 million in a pooling-of-interest transaction expected to be announced early Tuesday. ISS will also assume the outstanding stock options of Netrex employees. Atlanta-based ISS provides software that helps corporations detect intruders and weak spots on their computer networks. Netrex of Southfield, Mich., runs a round-the-clock network-security monitoring service.

"Our customers are just begging for this," says ISS CEO Tom Noonan. Many of ISS' corporate customers lack the staff to monitor their network-security systems. By pairing with privately held Netrex, ISS can secure repeat sales with a broad customer base, he says. ...