IBM Corp. will buy privately held security software company Q1 Labs to grow its security software and services business, the technology company said Tuesday. The price was not disclosed.
The company is trying to bulk up its business in the $94 billion market for security software and services, which IBM said has a compound annual growth rate of nearly 12 percent.
With the acquisition, the Armonk, N.Y., company said it has formed a new security systems division, which will be led by Q1 Labs CEO Brendan Hannigan. Over the past decade, IBM has acquired 10 other security products companies and 25 analytics-related companies.
The deal comes at a time when businesses are grappling with high-profile security breaches. Sony Corp., Citigroup, Google Inc. and a slew of other companies have reported intrusions into their networks this year. In Sony's case, more than 100 million online accounts were affected.
The company said Q1's technology could detect activities in a business that deviated from typical behavior, helping prevent network breaches and the leaking of confidential information.
IBM shares fell $1.87, or 1.1 percent, to $171.42 in late morning trading.