EDS has acquired UK-based information assurance and managed security services firm Vistorm for an undisclosed sum.

EDS plans to combine its existing IT security capabilities in the UK with the new Vistorm entity, creating an organisation boasting 400 information security specialists in EMEA, backed up by its own tools, software platforms and methodologies. Vistorm will also be a direct channel for EDS's other slate of offerings in infrastructure, security and privacy.

“The IT security market is a strategic priority area for EDS globally, and the strong information security expertise of Vistorm reinforces EDS’ existing capabilities in this critical and growing area,” said Bill Thomas, executive vice president of EDS in EMEA. “The combination of Vistorm’s industry-leading IT security portfolio of products and deep understanding of technology needs in security – together with EDS’ global resources and strengths in managing complex infrastructure and applications securely – will provide unmatched end-to-end security.”

Vistorm, founded in 1991, has annual revenues of approximately $100m and more than 200 employees across the UK, with a client roster that includes the Royal Bank of Scotland, Nationwide and Balfour Beatty. It's a good move for EDS to boost its security offering, according to analysts. “This deal is a prime example of EDS's goal to use acquisitions to increase its presence in specific geographic markets - in this case the UK - and to amplify its capabilities in areas with substantial potential growth - and security services are a current EDS priority,” said Ovum's John Madden.

“EDS signaled its interest in expanding its reputation and expertise with the appointment in February of a new global information security leader, responsible for coordinating the outsourcer's activities in this space. Such a move is a natural extension for EDS, with its long-time experience in running and securing large-scale infrastructure and applications environments. And with concerns about data breaches and privacy at an all-time high, it seems EDS is trying to stay ahead of customer demand.

“We should also note that maintaining Vistorm as a separate company, and folding EDS's existing security capabilities into Vistorm, could help reduce the need for a protracted integration of the two companies with limited impact on current clients or new sales; in any deal such as this there's always the risk of getting bogged down in acquisition inertia.”