Update: Oracle buys Oblix

Oracle announced today the acquisition of Oblix, a developer of identity-based security products. Oblix is a leading developer of identity management software that allows Web access control, including SSO (Single Sign On), identity administration, and user provisioning. Oblix also provides security and regulatory compliance solutions, Oracle said in a news release.

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Oblix'stechnology complements the identity and access management solutions currently available in Oracle Identity Management and included as part of Oracle Application Server 10g.

But the acquisition of Oblix gives Oracle a stronger identity management position as part of Oracle's application platform suite. Oracle said it will move quickly to integrate Oblix's security products with its own infrastructure software.

Nine-year-old Oblix's product portfolio includes CoreID for identity management, identity federation server software ShareID, and CoreSV for managing Web services. Oracle said it will continue to sell Oblix's products as stand-alone software, while it also integrates Oblix's features into its own technology stack.

"This acquisition will allow Oracle to offer customers a complete solution for securely managing identities; one that is even more flexible, scalable, and integrated and helps customers lower the cost of regulatory compliance," said Thomas Kurian, senior vice president, Oracle Server Technologies, in a statement. "These capabilities will further enhance Oracle's market-leading security infrastructure. We are very pleased to be joining with Oblix to provide a new level of security and service to our customers."

"The strength of Oblix's leading identity management solutions combined with Oracle's worldwide presence and its extensive software and services business will bring to customers an unprecedented ability to build identity into their software infrastructure and applications," said Gordon Eubanks, president and CEO of Oblix. "This combination represents the future direction of security software."

Oblix, based in Cupertino, Calif., has about 100 employees, and almost all will be offered jobs at Oracle, according to an Oracle spokesman. Oblix's staff will be gradually moved to Oracle's Redwood Shores, California, headquarters, he said.

Oracle plans to hold a conference call Tuesday to further discuss the acquisition, with its senior vice president of its Server Technologies group, Thomas Kurian. After years of spurning acquisitions as a viable growth option, Oracle has been on a shopping spree lately. In December it spent $10.3 billion to buy rival applications developer PeopleSoft, and last week it signed a deal to buy retail applications maker Retek for $630 million. Oracle Chairman and Chief Executive Officer Larry Ellison said last Tuesday that Oracle had no plans for any major acquisitions this quarter.