Boeing acquires Narus with an eye on cybersecurity business

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July 8, 2010 11:31 AM EDT

Continuing its growth strategy through targeted M&As, Boeing on Wednesday announced an agreement to acquire Narus, a Sunnyvale-based company specialized in real-time network traffic and analytics software. This acquisition is aimed at improving cybersecurity business of Boeing, the area which holds much potential due to increased cyber attacks on large Internet Protocol(IP) networks.

"This acquisition is another step forward in our strategy to develop integrated solutions for better network visibility, threat detection, and cybersecurity," said Roger Krone, president of Boeing Network & Space Systems, a business within the Boeing Defense, Space & Security (BDS) operating unit.

After completion of acquisition, Narus will be a part of Boeing's Network & Space Systems, a wholly-owned subsidiary of the company. Network-centric technology from Narus’ will be put to use in Boeing's smart grid energy work, the secure networking of Boeing's ground, air and space products, and the defense of the Boeing network, the statement said. Besides, it is also expected to support cyber activities within the Network & Space Systems.

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"We see this as a great opportunity to continue to serve our existing customers while expanding our network traffic analytics and cybersecurity solutions to new markets globally with the support and backing of The Boeing Company,” said Narus Chief Executive Officer and President, Greg Oslan.

There is no mention of terms of transaction as Narus is privately-held firm and the acquisition is expected to get completed in the third quarter of 2010.

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Last week, Boeing agreed to acquire defense equipment maker Argon ST for $34.50 per share in cash, or about $775 million, expanding its growth strategy in cyber and intelligence markets. Argon makes sensors for intelligence, surveillance and reconnaissance systems.

Boeing has two business divisions, one to build commercial airplanes and the other involved in defense, space and security businesses specializing in innovative and capabilities-driven customer solutions and manufacture of military aircraft.

Its defense, space & security business earned revenues of $33.6 billion employing 68,000 people globally in 2009. The overall revenues of the company stood at $68.2 billion in 2009. The company projects addressable defense, space and security market to around $1 trillion over the next five years.

Narus employs around 150 people globally with offices in the US, UK and India. Its solutions cater network & service providers, mobile carriers, and the governments. It protects and manages the largest IP networks around the world like KT (Korea), KDDI (Japan), Raytheon, Telecom Egypt, Reliance (India), Cable and Wireless, Saudi Telecom and U.S. Cellular.

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