Storage vendor EMC has agreed to acquire RSA Security for $2.1bn in cash.

RSA is one of the leading vendors of identity and access management technologies, and is best known for its digital ID devices for enterprises.

The company is also behind the RSA Security tradeshow which is the largest event in the security industry.

The deal aims to allow EMC to further evolve from a storage vendor into an information infrastructure company, chief executive Joe Tucci said in a conference call yesterday.

As EMC is broadening its scope, Tucci explained that encryption and data protection are logical areas for the company to cover.

"We need to make sure that information is protected and to encrypt it wherever digital information lives," he said.

Tucci added that EMC aims for RSA to grow into a billion dollar business. The security vendor realised revenues of $310m in 2005 and EMC projects sales of $500m by 2007.

Referring to surveys about investment priorities in the IT market, Tucci said: "Security and storage usually dominate the top of those lists. Having both of these will bode well for the future."

The deal illustrates the ongoing consolidation trends in the security and storage markets. Sun Microsystems acquired StorageTek for $4.1bn last year, and Symantec acquired Veritas for $13.5bn in December 2004.