Trusted Information to buy Texas software company A leader in detection of Web intruders

Internet

October 04, 1997|By Lorraine Mirabella | Lorraine Mirabella,SUN STAFF

Trusted Information Systems Inc., a Howard County Internet security company, said yesterday that it will acquire Haystack Laboratories Inc., a privately held Austin, Texas-based software company.

"We're transforming the Internet into a safe place to do business," said Gina Dubbe, vice president of sales for the 300-employee Glenwood-based company that sells network security products and consulting services to Fortune 1,000 companies. "Intruder misuse detection is just coming of age, and Haystack is a leader in their field."

Haystack, with 34 employers and $3 million in revenue last year, sells Stalker and WebStalker software that detects and monitors unauthorized intrusions of Web sites. The software responds to attacks by immediately disabling a log-on or killing a process. It can automatically restore any changes.

"The Internet can be an unsafe place to do business, and there's some inherent risk when a large corporation puts itself on the Internet," said Stacey Fairbairn, Trusted Information's manager of marketing and communications. "We have products and consultants and a research arm that looks at ways to secure the corporation's networks from any harm that might be done by malicious activity."

Trusted Information is expected to disclose terms of its common stock deal Monday. With the acquisition, Trusted Information expects about $40 million in revenue this year, making it competitive with other medium-size players in the network security field, company officials and analysts said.

Haystack's products will take Trusted Information's product functions one step further, said Sterling Auty, an analyst with J. -- P. Morgan Securities in New York.

"The product lines of the two companies are completely complementary," said Auty. "It gives Trusted a more complete computer security product offering, and it really helps segregate Trusted from the traditional companies selling only firewalls."

The deal should help improve Trusted's revenue prospects, Auty added.

"WebStalker is a very well-respected product within the computing community," he said.

Trusted Information's stock rose $1.12 yesterday, to $11.50 a share.

Pub Date: 10/04/97

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