Trustwave Acquires BitArmor

Trustwave, provider of on-demand data security and payment card industry compliance management solutions to businesses and organizations, has acquired BitArmor, provider of data encryption solutions. The terms of the deal are confidential.

Encryption is the conversion of data into a format that cannot be understood by unauthorized parties. Encryption, along with other information security technologies such as Data Loss Prevention (DLP), Network Access Control (NAC), Intrusion Detection (IDS) and Prevention Systems (IPS), and Unified Threat Management (UTM) that are already part of Trustwave’s comprehensive security suite, form the basis of an effective, multi-layered strategy to ensure the continuous protection of information.

The core of BitArmor’s solution is its Smart Tag technology, which provides a simplified and more effective approach to encryption due to its focus on the protection of the data itself – not the devices to which data is saved or the networks over which the data travels. Smart Tag technology works by attaching encryption policies to each file or folder resulting in Persistent File Encryption (PFE). This ensures that the data can only be viewed by an authorized user regardless of the devices they use, such as desktops and laptops, USB drives, e-mail attachments, storage servers, file shares and tapes. In addition, BitArmor offers a Full Disk Encryption (FDE) solution to minimize the risk of data loss in the event of a misplaced or stolen mobile device such as a laptop. The Smart Tag technology is available as a hosted or non-hosted service based on the customer preferences. Trustwave will be integrating this technology into its current DLP and endpoint security technology to provide an effective solution to discover and protect sensitive data for compliance, privacy and intellectual property protection.

Gartner, Inc. cited BitArmor in their research Cool Vendors in Infrastructure Protection published in 2009. BitArmor was also recently named as a Finalist in 2010 SC Magazine Awards for Best Encryption Solution (winners to be announced in March).

In addition to its specific relevance to Requirements 3 and 4 of the Payment Card Industry Data Security Standard (PCI DSS), new state and federal data privacy regulations are also increasing the demand for encryption. While many states have required public notification of data breaches for years, recent legislation in Nevada and Massachusetts specifically mandates encryption of personal information. The federal Health Information Technology for Economic and Clinical Health (HITECH) act, passed in 2009, stiffens penalties for Health Insurance Portability and Accountability Act (HIPAA) violations and widens its scope to include any company that processes personal information, not just healthcare organizations themselves. This includes law firms, accounting firms and records processors previously unaffected by the legislation.

"This acquisition enables us to help businesses meet evolving data security and compliance requirements as dictated by industry standards, such as the Payment Card Industry Data Security Standard, and regulations that mandate the protection of personally identifiable information," said Robert J. McCullen, chairman and CEO of Trustwave. "Integrating BitArmor’s industry-leading SmartTag technology into our software enhances our endpoint security offering."

"Satisfying compliance requirements while cost-effectively establishing a forward-looking security strategy is a critical challenge for enterprises, particularly those that have not historically invested heavily in security technologies. The incorporation of BitArmor’s encryption capabilities with Trustwave’s endpoint and network discovery technology, managed service model and broader portfolio is aimed at addressing this acute need," said Steve Coplan, senior analyst in the Enterprise Security Practice at the 451 Group.

"As an organization trying to do as much as we can to secure data, adding BitArmor encryption to Trustwave’s robust security and compliance solutions certainly makes sense," said Matthew Stewart, Director of Information Security at Robert Morris University.

"Encryption has become mission-critical technology for government and companies in every industry, and delivering it broadly as part of Trustwave’s solutions will bring immediate benefits to both large and small organizations," said Patrick McGregor, CEO of BitArmor, who will remain with the company. "Our team of encryption experts is very excited about becoming part of the Trustwave team."