FTV Management Company, L.P.
  • News
  • Insights
  • Company
  • Growing Companies
    • Overview
    • FTV Propelยฎ
  • Global Partner Networkยฎ
    • Overview
    • Strategic Advisory Board
  • Team
  • Portfolio
Investor Portal

Search

FTV News

Novell Acquires e-Security, Redefines Security and Compliance Management

April 19, 2006
Share this...
  • Linkedin
  • Twitter
  • Facebook
  • Email

FTVentures becomes first US investor, leads round with original investment partners.

Novell will bridge the gap between systems, security and identity management and compliance monitoring and reporting

Waltham, MA โ€“ Novell today announced its acquisition of e-Security, Inc., a move that will make Novell a pioneer in delivering a single view of security and compliance activities across the entire enterprise. The deal combines the benefits of Novellโ€™s identity and systems management expertise with e-Securityโ€™s real-time event monitoring, response and reporting capabilities. With a comprehensive view of user, network and application events, customers will now be able to streamline a previously labor-intensive and error-prone process, cut costs through automation, and build a more rigorous, predictable security and compliance monitoring program.

โ€œIn the compliance area, customers want converged solutions that encompass system, identity, access and security event management,โ€ said Chris Christiansen, IDC vice president of security products and services. โ€œWith the acquisition of e-Security, Novell is the only vendor with the potential to proactively address business needs for a real-time, comprehensive compliance solution that integrates people, systems and processes.โ€

Automated Compliance Monitoring and Reporting

From government regulations such as Sarbanes-Oxley, Basel II and HIPAA to corporate governance initiatives, regulatory environments have become increasingly complex. Too often, organizations are left to rely on varying information sources and tools to monitor compliance, an approach which is inefficient and error-prone. To streamline workflow and ensure data accuracy, Novell is focused on delivering an infrastructure for more comprehensive security and event monitoring. With the addition of e-Securityโ€™s award-winning product, Sentinel 5, Novell can deliver a solution that provides a real-time, holistic view of security and compliance activities, while helping customers monitor, report, and respond automatically to network events across the enterprise.

A Holistic Approach to Security and Compliance

โ€œCompliance 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,โ€ said Jack Messman, chairman and CEO of Novell. โ€œNovellโ€™s acquisition of e-Security demonstrates our commitment to this growing market, leveraging a core element of our business to deliver robust security and compliance solutions that meet our customersโ€™ needs in an increasingly regulated business environment.โ€

Reed Harrison, founder and chief technology officer of e-Security, said, โ€œCombining Novellโ€™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.โ€

Sentinel 5 can be purchased from Novell beginning in May. The next version of the Novell and e-Security solution is expected to be available this summer.

Novell paid $72 million to acquire e-Security. Novell estimates a positive revenue impact from the acquisition of roughly $20 million in the coming 12 months.

Conference Call Notification Novell will host a conference call to discuss the acquisition at noon EDT on April 19. Dial in access for the call is: US/Canada โ€“ (888) 677-2190; International โ€“ (773) 756-0374; Password โ€“ โ€œNovellโ€.

Forward-Looking Statement

This press release includes statements that are not historical in nature and that may be characterized as โ€œforward-looking statements,โ€ including those related to future financial and operating results, benefits and synergies of the companyโ€™s brands and strategies, future opportunities and the growth of the market for Identity and Access Management and Open Platform Solutions. You should be aware that Novellโ€™s actual results could differ materially from those contained in the forward-looking statements, which are based on current expectations of Novell management and are subject to a number of risks and uncertainties, including, but not limited to, Novellโ€™s ability to integrate acquired operations and employees, Novellโ€™s success in executing its Linux* and identity and resource management strategies, Novellโ€™s ability to take a competitive position in the Linux and identity and resource management industries, business conditions and the general economy, market opportunities, potential new business strategies, competitive factors, sales and marketing execution, shifts in technologies or market demand and the other factors described in Novellโ€™s Annual Report on Form 10-K filed with the Securities and Exchange Commission on Jan. 10, 2006. Novell disclaims any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this press release.

About FTVentures

Founded in 1998, FTVentures was the first venture capital firm in the U.S. to focus on technologies that benefit the global financial services industry. FTVentures now has over $623 million in total capital under management and is a leading investor in information technologies. FTVentures invests primarily in companies developing products and services in software and business services, with a particular emphasis on companies that enable financial institutions worldwide to expand and to operate more efficiently. FTVenturesโ€™ investors are 38 of the worldโ€™s largest financial institutions, and are leaders in the innovative deployment of technology and operational solutions. For more information, please visitย www.ftventures.com.

About Novell, Inc.

Novell, Inc. (Nasdaq: NOVL) delivers Software for the Open Enterprise. With more than 50,000 customers in 43 countries, Novell helps customers manage, simplify, secure and integrate their technology environments by leveraging best-of-breed, open standards-based software. With over 20 years of experience, more than 5,000 employees, 5,000 partners and support centers around the world, Novell helps customers gain control over their IT operating environment while reducing cost. More information about Novell can be found atย www.novell.com.

Novell is a registered trademark, and Software for the Open Enterprise is a trademark of Novell, Inc. in the United States and other countries. *Linux is a registered trademark of Linus Torvalds. All other third-party trademarks are the property of their respective owners.

Contacts

Susan Morton
NOVELL
Telephone: (781) 464-8239
smorton@novell.com

Keep Up-To-Date on the Latest FTV News

  • To unsubscribe from FTV Capital communications click here.
  • This field is for validation purposes and should be left unchanged.

NEW YORK

535 Madison Avenue, Floor 33
New York, NY 10022

212.682.4800


LONDON

15 Stratton Street
London, UK W1J 8LQ

SAN FRANCISCO

601 California Street, Floor 19
San Francisco, CA 94108

415.229.3000


CONNECTICUT

10 Titus Road, Suite 5B
Washington Depot, CT 06794

CONTACT

  • LinkedIn
Investor Portal

© 2025 FTV Management Company, L.P.
All rights reserved.

  • Terms of Use
  • Privacy Policy
  • Cookie Policy

  • Keep Up-To-Date on the Latest FTV News

  • This field is for validation purposes and should be left unchanged.

General Inquiries

This field is for validation purposes and should be left unchanged.