Rumors of the purchase were reported by Computer Business Review recently. EMC officially confirmed the acquisition when it also announced that it has closed its $2.1bn cash purchase of security software supplier RSA Security Inc.

Founded in 1996, and with a staff of around 125, NI has racked up around 700 customers including British Telecom, Capital One, CSC, JPMorgan Chase, FDC, EDS. NI’s systems monitor and record data and network access events, across what the company says are security, network and business applications, and mainframe desktop and storage devices. NI’s gear has been already certified for use with EMC’s Centera’s disk archive, and its rivals include ArcSight Inc.

NI will become part of EMC’s security division, which is the former RSA. This will be headed by former RSA CEO Art Coviello, and will continue to operate from its headquarters in Bedford, Massachusetts. That is around one hour’s drive from EMC’s headquarters in Hopkinton – and around 25 miles from Network Intelligence’s offices. Network Intelligence will become part of the security division.