BALTIMORE--(BUSINESS WIRE)--March 24, 2005--SafeNet, Inc. (NASDAQ:SFNT), setting the standard for information security, today announced that it has signed a definitive agreement to acquire all the issued shares of DMDsecure.com B.V. Under the terms of the agreement, SafeNet will pay cash consideration of 7.5 million euros to be complemented by an earn out schedule. This transaction is expected to be neutral in 2005.
DMDsecure is a leader in carrier grade server Digital Rights Management (DRM) software for solution providers and software vendors as well as broadcasters, broadband & mobile operators and service providers.
With current customers such as Arcor, British Telecom and Deutsche Telecom, DMDsecure is a leading technology provider of server DRM components for the PC, mobile and digital home domains. DMDsecure is an active member in driving DRM standards and contributes to the Open Mobile Alliance (OMA), the Mobile Entertainment Forum (MEF), the Digital Video Broadcasting Forum (DVB), the Internet Streaming Media Alliance (ISMA), the MPEG standards organization and the Coral Consortium.
According to Anthony Caputo, Chairman, and CEO of SafeNet, "When we merged with Rainbow Technologies, we announced our intention to aggressively invest in the rights management business. In fact, we organized a business unit to be singularly focused on this arena, and that investment paid off in 2004 through double-digit growth. The acquisition of DMDsecure will enable us to extend our growth into the electronic download content protection market segment."
Mr. Caputo added, "The trend is clear that the PC market, the mobile market, and consumer electronics are converging. In each of these platforms, there is a clear trend to electronic delivery of content whether in software, audio, video or gaming formats. The combination of SafeNet's strong security, DMD's content DRM server, and our recent partnership announcement with Royal Phillips Electronics provides SafeNet customers with a complete suite of strong standards-based security to protect all of these electronic download formats. IDC has projected 56% CAGR for DRM technologies through 2007. This acquisition moves our company into an additional DRM segment that will allow us to exploit more of this growth opportunity."
"We hear customers asking for stronger security when it comes to content security; and the marriage of our Digital Rights Management software with SafeNet's security expertise is absolutely the right answer," said Rist Brouwer, DMDsecure's CEO. "Our team is delighted to integrate with SafeNet."
The DMDsecure team will operate as part of the rights management business unit, reporting to Prakash Panjwani. Rist Brouwer, the current CEO of DMDsecure, will lead strategic business development activities for SafeNet in the broader market of content protection.
About the Transaction
A wholly owned subsidiary of SafeNet, Inc., SafeNet Technologies, B.V., will acquire for cash all outstanding shares of DMDsecure from the existing shareholders of DMDsecure pursuant to an agreement executed by SafeNet, Inc., SafeNet Technologies, B.V. and the selling shareholders. The closing of the transaction is subject to certain customary conditions, and is expected to take place in April of this year.
About SafeNet, Inc.
SafeNet is a global leader in information security. Founded more than 20 years ago, the company provides complete security utilizing its encryption technologies to protect communications, intellectual property and digital identities, and offers a full spectrum of products including hardware, software, and chips. ARM, Bank of America, NetGear, the Departments of Defense and Homeland Security, Adobe, Samsung, Texas Instruments, the U.S. Internal Revenue Service and scores of other customers entrust their security needs to SafeNet. For more information, visit www.safenet-inc.com.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995
The statements contained in this release, which are not historical facts, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are subject to uncertainties that could cause actual results to differ materially from those set forth in or implied by forward-looking statements. Important factors that could cause actual results to differ materially are included but are not limited to those listed in SafeNet's periodic reports and registration statements filed with the Securities and Exchange Commission. The Company assumes no obligation to update information concerning its expectations.
Editor's Note: SafeNet is a registered trademark of SafeNet, Inc. All other trademarks are the property of their respective owners
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