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| ESS will bring to INSIDE Secure complementary offerings for a complete security architecture |
INSIDE Secure recently announced it has completed the acquisition of Embedded Security Solutions (ESS). ESS is a high expertise business which designs and develops encryption-related security hardware intellectual property (IP) and software for a variety of industries, including the mobile and networking markets. INSIDE Secure paid a transaction consideration of USD 41.6 million net of cash acquired, after an adjustment based on the estimated working capital of the transferred business at closing and completion of certain closing-related transactions. INSIDE Secure may pay an additional cash consideration of up to USD 5.2 million subject to completion of certain transactions before April 1, 2013.
As announced on November 19, 2012, when INSIDE Secure entered into an agreement to purchase ESS, this strategic acquisition will enable the company to reinforce its position as a key player in the fast-growing security solutions market. ESS will bring to INSIDE Secure complementary offerings for a complete security architecture, as well as additional solutions for securing both content (Digital Rights Management or “DRM”) and data exchange (Virtual Private Network or “VPN”). By leveraging the strong capabilities of INSIDE Secure’s existing Mobile NFC and Digital Security businesses, the combined offer should also lead to additional sales in high growth markets. The transaction is expected to be accretive to INSIDE Secure’s adjusted [1] operating and net results as of 2013, and to enhance the company’s gross margin.
As a result of this acquisition, Simon Blake-Wilson, vice president of ESS since 2006, has been appointed executive vice president in charge of INSIDE Secure’s Embedded Security Solutions division. Simon Blake-Wilson has a proven track record in digital security solutions. He is a well-known researcher in wireless security and his skills range from cryptographic protocol design to the implementation of security policies and the business and legal ramifications of digital signatures.
