Under the terms of the deal, Norkom shareholders will receive around $2.80 per share for the shares they own from BAE Systems.
“In completing this transaction Norkom will be further strengthened by the scale, reputation and resources of BAE Systems….Norkom's technology platform together with BAE Systems' complementary technology and rich knowledge of the security space will create a fantastic opportunity to bring additional offerings to the market”, said Norkom chief executive Paul Kerley.
BAE Systems CEO Ian King added, “Countering financial crime is a priority for governments and financial institutions. There is a compelling logic to the combination of Detica’s NetReveal product and the complementary capabilities and customer reach of Norkom. The combination will result in a significantly enhanced offering for customers and present an opportunity for accelerated growth for the BAE Systems Group in the fast growing cyber and intelligence services sector.”
In 2008, BAE Systems acquired Detica, a provider of IT intelligence and anti-fraud software, for around $1 billion.
BAE Systems has been expanding rapidly in the cybersecurity area to make up for some of the revenue decline in the defense sector. In December last year, the company agreed to acquire Danish cybersecurity firm ETI A/S for $212 million. The previous month, BAE agreed to buy Australian cybersecurity firm stratsec.net for $23 million.