Rainbow Buys Company

Rainbow Technologies Inc. said it has acquired Software Security Inc. of Darien, Conn., for about $5.8 million in stock.

Both companies make computer security systems that prevent theft or unauthorized copying of software. Software Security has been privately held since it was founded in 1983.

The acquisition “diversifies our customer base and enhances our strong product line with new technology,” said Walter Straub, chief executive of Irvine-based Rainbow.

Rainbow reported earnings of $5.42 million on sales of $26 million through the first six months of 1996.