Aladdin Knowledge Systems and Secure Computing Corp announced a definitive agreement for Aladdin to acquire the Secure SafeWord product line for approximately $65 million in cash, including acquisition costs.

The acquisition of Secure SafeWord will position Aladdin as the premier strong authentication provider, adding highly innovative token technology as well as a strong market and channel presence to the existing Aladdin eToken family of solutions. To continue SafeWord's worldwide growth, Aladdin plans to fully engage and support Secure Computing's substantial, vibrant network of current SafeWord channel partners. Secure SafeWord added $32 million to Secure Computing's revenue in 2007.

Secure Computing's SafeWord business unit and all of its employees, including the SafeWord research and development group and SafeWord sales team, are expected to be incorporated into Aladdin Knowledge Systems.

The transaction is expected to be consummated in August or September 2008. Pending a successful completion of the transaction, the acquisition is anticipated to be accretive to Aladdin on a GAAP diluted earnings per share basis toward the last quarter of 2009.

Page(s)   1