Novell has acquired security management and compliance monitoring firm e-Security in a $72m (£40m) deal.
The network software company believes the acquisition will generate $20m in additional revenues over the next year.
Jack Messman, Novell’s chief executive, said: “Compliance is changing the way companies think about security and identity management: the focus now is on automating and reporting results, as well as responding to events and non-compliant activities as they happen.
“Novell's acquisition of e-Security demonstrates our commitment to this growing market.”
Reed Harrison, founder and chief technology officer of e-Security, said, “Combining Novell's expertise in identity management with our real-time security event monitoring and reporting capabilities will create an unmatched solution. As a member of the Novell family, we can now help redefine how customers think about security and compliance.”
The acquisition of e-Security comes just days after it emerged that Novell has itself been the subject of takeover moves. Oracle chief executive Larry Ellison revealed that he had looked at buying Novell, in order to add Linux distribution to his company’s portfolio.