Aladdin Knowledge Systems to acquire Secure SafeWord

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DQC Bureau
New Update

New Delhi

Aug 1, 2008

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

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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.

Speaking about the acquisition, Yanki Margalit, Chairman and CEO, Aladdin
Knowledge Systems said, "Through this acquisition, Aladdin stands as a
worldwide leader in strong authentication technology. The incorporation of
SafeWord into the Aladdin set of eToken authentication solutions will benefit
customers by providing them a broader range of solutions for their security
needs."

"The sale of Secure SafeWord enables Secure Computing to redouble its
focus on its areas of greatest strength and expertise-delivering comprehensive
and integrated web, mail and network gateway appliances. The company believes
the vast majority of customers and channel partners will both support and
celebrate the company's renewed focus," said Daniel Ryan, President and
CEO, Secure Computing.

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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 sale of SafeWord
to Aladdin Knowledge Systems by Secure Computing is subject to certain closing
conditions, which are contained in the asset purchase agreement entered into by
the parties.

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.