CA to Acquire Arcot Systems for Fraud Prevention

CA Technologies has agreed to pay $200 million to add Arcot Systems' anti-fraud and authentication technologies to its identity and access management portfolio.

CA Technologies has agreed to acquire Arcot Systems for its authentication and anti-fraud technology.

The acquisition comes with a price tag of $200 million. Founded in 1997, Arcot develops software-based digital signature and identity tools to help secure online transactions. Delivered via the cloud or on-premise, the company's products protect about one million online credit card transactions a day, according to Arcot.

CA's plan is to blend Arcot's capabilities with CA's identity and access management (IAM) solutions, specifically the CA SiteMinder portfolio.

"Arcot brings to CA Technologies a strong business in fraud prevention and unique capabilities in advanced authentication using a software-only approach," said Dave Hansen, general manager for the Security business at CA Technologies, in a statement. "This acquisition adds industry-leading technology that extends the breadth and depth of our strong IAM portfolio and gives our customers more first-class options for securing their Web-based business."

According to CA, the acquisition will help accelerate the company's cloud security strategy, which is focused on enabling IAM services from the cloud, offering identity services for cloud providers and allowing organizations to extend their existing on-premises IAM systems to support cloud applications and services.

"Identity is a critical area for security whether you're talking about in-house or the cloud, and with 120 million identities verified by our solutions today, we bring a strong, solid recurring revenue base as well as sources of new growth opportunities for CA Technologies," said Ram Varadarajan, CEO of Arcot, in a statement.

The deal is expected to close by the end of CA's second fiscal quarter Sept. 30.