Under terms of the deal, Dascom will become an IBM subsidiary. Financial terms of the deal were not disclosed.
The companies already work closely together. IBM offers Dascom?s IntraVerse software as part of its SecureWay Policy Director and SecureWay FirstSecure suites.
IntraVerse is a security policy product used for centralizing network authorization for different operating environments, such as PC mainframes, Unix, and Windows NT operating systems.
"Security policy control has emerged as a critical enabler for e-business," said Jeff Jaffe, general manager of IBM SecureWay.
Dascom's technology is important because it allows existing IBM customers an easier way to add Internet or intranet support to their computer systems.
"No company wants to do e-business by having to rewrite everything they have invested in over the years," said Jaffe.
Dascom has 95 employees and locations in California, Texas, the United Kingdom, and Australia. IBM announced no immediate layoffs or changes to basic operations as a result of the deal.
Boeing, Canon, Citibank, ReMax, and T. Rowe Price are among Dascom's existing customers.