EDS buys UK-based Vistorm

EDS has acquired UK-based Vistorm Holdings Limited, a provider of information assurance and managed security services. Vistorm provides information assurance and managed security services in the UK and globally. Vistorm will operate as a separate entity led by its existing management team under its existing CEO, Jim Kent.

Vistorm, founded in 1991 has annual revenues of approximately £50m. No further financial details were disclosed. However, if I was a guessing man, I'd reckon a valuation of around £30-£40m bearing in mind valuations for similar businesses. Vistorm has 220 employees and associates in the UK and serves a broad base of UK clients in a range of industries, including companies as Royal Bank of Scotland, Nationwide and Balfour Beatty.

According to IDC, the Worldwide Security Market is expected to double from $35.7b in 2006 to $71.8b by 2011 with a 15% CAGR for the 2006-2011 forecast period. The Worldwide Security Services Market was valued at $17b in 2006 and is expected to grow to $37.9b in 2011, with a CAGR forecast for the 2006-2011 period of 17.4%.

Security is one of the (few) really hot areas in the SITS arena right now and many of the leading players (like EDS) want to ensure that they are part of one of the major growth sectors. In the UK Detica has made quite a name for itself in the security area which I am sure has not escaped the attention of others.

That EDS is the purchaser in the UK is also worthy of note. EDS hardly ever feature in the UK M&A lists. Vistorm is based in Warrington, Cheshire – “just up the road” from the home of Bill Thomas (Exec VP responsible for EDS EMEA) who announced the deal.

What with the mega Shell contract on Monday, it’s turning into quite a Bill Thomas/ EDS news week!