Aladdin Knowledge Systems to acquire Secure SafeWord

NEW DELHI, INDIA: 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.

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.

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.