Eye on Oracle

Oct 5 2010   3:12PM GMT

Oracle acquires Passlogix for software security

Mark Fontecchio Mark Fontecchio Profile: Mark Fontecchio

Oracle announced today that it has agreed to acquire privately held Passlogix, a maker of single sign-on software, to boost its own software security and identity management and pull Passlogix customers into its own support and licensing umbrella.

The Oracle-Passlogix acquisition is expected to close by the end of this year. Oracle did not disclose financial terms of the deal.

New York-based Passlogix has been around since 1996, and claims having sold 21 million licenses for its software. Its CEO is Marc Baroditsky, who previously worked for another security software company called Numera. Its customers include HSBC, Panera Bread and the U.S. Postal Service.

Oracle has been partners with Passlogix since 2006, an agreement under which Oracle sold rebranded versions of Passlogix’s identity management and single sign-on software under its own Fusion Middleware name. Expect the Passlogix software to be rolled into and integrated more with Oracle Access Manager and Oracle Identity Manager.

Current Passlogix customers, meanwhile, can expect to be pushed into adopting Oracle’s entire identity management portfolio at higher licensing and support costs. Nothing new there. To give you an idea, here’s an excerpt from a FAQ on the Oracle-Passlogix deal:

How is the proposed transaction between Oracle and Passlogix expected to benefit Passlogix customers?

Passlogix products are complementary to Oracle’s identity management offerings and the combined solution is expected to provide a more comprehensive solution than available today.

Passlogix’s customers are expected to benefit from the increased investments in R&D and are also expected to receive improved customer support through access to Oracle’s 24X7 global support and services organization.

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