On the heels of Dell buying EMC for $67 billion and Western Digital buying SanDisk for $19 billion, HP is selling off its TippingPoint network security business to TrendMicro for $300 million. TippingPoint is a provider of next-generation intrusion systems and network security solutions, and HP says that in future it will resell network security services from partners (including TrendMicro) rather than own its own assets.
The move comes in advance of HP completing a break-up of its business into PC and corporate services, a move it announced last year would be complete by the end of this fiscal year.
HP was rumored in September to be shopping TippingPoint for between $200 million and $300 million. The deal is expected to close by the end of Q4.
Trend Micro says that the deal will include security technology, IP, industry expertise and TippingPoint’s customer base. It will be combining TippingPoint’s business with its existing network security operations in a new business unit called Network Defense.
At the same time, HP says that it is pulling out of having its own network security business and will instead partner with third parties for such services “so we can invest in other areas of our security portfolio.” HP says that after the deal closes it will continue to partner with TippingPoint as a “strategic customer and partner.”
Trend Micro and HP have had a strategic partnership in place since 2014. Trend Micro is positioning this as its way of completing the range of security solutions that they can offer to enterprises, while keeping some continuity in the HP relationship.
“Organizations need a layered threat defense working seamlessly across the enterprise to address threats before, during and after an attack,” said Eva Chen, CEO of Trend Micro in a statement. “This new next-generation network defense solution combines our best-in-class network breach detection system, with proven intrusion prevention and response capabilities from TippingPoint. Given our tenure with both HP and TippingPoint technology, we are excited about the agility of this acquisition and the value it will create for customers.”
The rise in cloud computing and IP-everything has led to an increase in malicious hacking and other cybercrime, and that in turn has led to a much larger priority for network security investments among enterprises.
But at the same time, as the space becomes more sophisticated, it looks like we may see yet more companies emerge that focus just on security rather than trying to offer a full stack of IT services.
TippingPoint became a part of HP in 2010, when its previous owner 3Com was acquired by HP for $2.7 billion. Before that, 3Com bought TippingPoint in 2005 for $442 million — making today’s $300 million price something of a steal.