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EMC Corp. (EMC - Analyst Report) recently acquired Aveksa Inc., a Mass.-based security & identity management software provider. However, the financial details of the deal were not available. The current acquisition will be integrated into EMC’s RSA security division.

RSA offers security solutions, including enterprise governance, risk and compliance, data loss prevention, security information management, continuous network monitoring and fraud protection, to businesses. The segment’s products also encompass identity management and protection, which include identity assurance and access control, encryption and key management.

Aveksa provides cloud-based identity management solutions to enable businesses to regulate access to their corporate networks and applications. This ensures secured data management and better corporate compliance.

Aveksa’s clientele includes companies such as Deutsche Bank (DB - Analyst Report), Daimler Financial Services and Zions Bank.

The acquisition will strengthen EMC’s security division and better position it in the cloud-based security solutions market. It will also enable the company to upsell and cross-sell its products into Aveksa’s customer base.

EMC has been building its security portfolio through the acquisition of companies such as NetWitness and Silver Tail. Moreover, the RSA division has been performing well. In the last reported quarter, the RSA division reported a 12.5% year-over-year growth.

EMC’s aggressive acquisition strategy has been largely responsible for the company’s positioning. The company expects to enhance its presence in the emerging markets of cloud computing, big data, mobile and security applications through acquisitions.

We believe that the most-recent acquisition will provide EMC a significant competitive edge over companies like Hewlett-Packard (HPQ - Analyst Report) and International Business Machines Corp. (IBM - Analyst Report).

However, a sluggish IT spending outlook will continue to keep margins under pressure in the near term.

Currently, EMC has a Zacks Rank #2 (Buy).

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