Las Vegas Sun

March 29, 2024

IBM buys local software company

Technology giant IBM Corp. this morning announced that it has acquired Las Vegas software company Systems Research and Development.

SRD designs security software capable of tracking individuals operating within a computer system.

The software detects relationships among people in order to uncover criminal activity such as cheating, stealing or bouncing checks. In recent interviews, John Slitz, SRD's chief executive, said SRD's major customers included casino operators seeking to identify customers' habits. He also indicated that the company had made inroads with banks and government clients seeking to identify fraud and security threats.

Richard Wozniak, director of business intelligence for IBM, said the acquisition of SRD is a key move in putting the company at the forefront of an emerging market.

"SRD really has an excellent technology," he said. "As we began to look at it, we realized they had a significant lead on competitors, and it would take a very long time for us if we were to build something like this."

He said the acquisition talk had been in the works for "many months."

SRD was founded in the San Francisco Bay Area in 1984 by Jeff Jonas. The company relocated to Las Vegas in 1993 when it entered into several contracts with Las Vegas gaming companies.

Wozniak said the approximately 50 Las Vegas SRD employees will remain in Southern Nevada. The company will become part of IBM's Information Management Division, which is based in Somers, N.Y.

Slitz, he said, will remain with the company as a "key local executive." Jonas also will remain with the local operation and has been named a "distinguished engineer."

Financial details of the acquisition were not disclosed.

The deal was hailed by local technology industry officials and economic development leaders.

"I think this is starting to show the substance we are beginning to create here in Las Vegas," said Mike Ballard, head of the Technology Business Alliance of Nevada.

Ballard pointed out that this is the second local company to be acquired by a major national corporations in recent months. In November, SBC Communications and BellSouth Corp. partnered to purchase Henderson-based YellowPages.com.

Somer Hollingsworth, chief executive of the Nevada Development Authority, said adding a company such as IBM to the local landscape adds national validity to efforts to expand the economy.

"That's the bellcow that we've been looking for," he said. "It says a lot for the local community and it also says a heck of a lot for a local Las Vegas company, too."

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