IBM announced its intention to acquire privately held security and compliance testing company Watchfire. Through the acquisition, IBM intends to extend its risk management and Web application security offerings.

"Web application attacks can expose high-value data such as personal information, customer records and corporate intellectual property, and these attacks are top-of-mind for companies worldwide," said Peter McKay, Watchfire president and CEO. "Watchfire technology will extend IBM's broad security and compliance product and services offerings to help customers address one of today's most critical and challenging security issues. In addition, Watchfire can seamlessly integrate into IBM's current offerings to provide a more comprehensive solution."

IBM will make Watchfire part of its Rational software brand. Terms of the acquisition weren't disclosed; however, IBM expects the deal to close in third quarter 2007.