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Trend Micro Acquires HP TippingPoint Network Security Business In $300M Deal: Why This Is Game-Changing

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Trend Micro signed an agreement to purchase the network security business TippingPoint from Hewlett-Packard for the sum of $300 million. The deal follows other big moves in the area of Internet security: Dell bought EMC for a price of $67 million and WD acquired SanDisk for $19 million.

TippingPoint provides next-generation intrusion systems and network security solutions (NGIPS).

A Trend Micro spokesperson says that the agreement ratifies the transfer of industry expertise, intellectual propriety rights, security technology as well as the base of customers from TippingPoint.

The deal makes Trend Micro one of the best solution providers for dynamic threat defense, regardless if the object of the defense is a data center, network, endpoint or the cloud. Using a combination of existing and purchased capacities, Trend Micro aims to offers businesses an advanced Network Defense system, estimated to serve approximately 3,500 enterprise customers.

"Organizations need a layered threat defense working seamlessly across the enterprise to address threats before, during and after an attack," CEO of Trend Micro Eva Chen, points out.

HP states that after the final legal arrangements are done, its strategic cooperation with TippingPoint will go on. The strategic partnership between HP and Trend Micro began in 2014.

HP explains why it chooses to sell its network security solutions unit.

"[S]o we can invest in other areas of our security portfolio," the company says. The American global information technology company adds that it will resell the network security services provided by its partners, Trend Micro included.

The widespread usage of cloud computing brings a heightened risk of nefarious Internet activity, meaning that enterprises that value data protection are more than ever interested to invest in network security solutions. Only this year, a couple of data breaches made the news, reinforcing the need for a safer Internet.

"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," Chen mentioned.

In 2005, 3Com purchased TippingPoint for $442 million. Five year later, after 3Com was bought for $2.7 billion by HP, TippingPoint arrived under HP's roof. Considering these numbers, Trend Micro got a very good deal out of this year's transaction with HP.

The deal between HP and Trend Micro is expected to close by the end of the fiscal year 2015.

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