Suggesting the deal creates a software-based security and analytics powerhouse, security solutions specialist Inside Secure has announced the successful completion of the acquisition of content security specialist Verimatrix.
According to Inside Secure, the combination accelerates the company’s strategic roadmap, offering an improved value proposition for its customers with an expanded reach to securely transform connected services across a broad range of markets. This combination creates a unique offering in the entertainment security market, a reinforced position in software and hardware security for the mobile, internet of things (IoT) and connected cars markets, and new growth opportunities in big data and business analytics applications. The combined company enables success through trusted business insights and easy to use security solutions.
“I am thrilled to welcome the Verimatrix team and expertise to create a strong force in cloud-based security and analytics,” declared Amedeo D’Angelo, chairman and CEO of the combined company. “This is an exciting time for the new combined company, which is ideally positioned to be a software-based security and analytics powerhouse. By joining forces, we are able to offer our customers the best value proposition in security, starting with entertainment and mobile industries and moving towards markets, such as IoT and connected cars, while deploying Verimatrix data analytics capabilities across our end markets, and to continue to create value for our shareholders. I would like to once again thank our shareholders for their support in the financing of the acquisition.”
The combined company is led by an established leadership team that Inside Secure suggests reflects the strengths and capabilities of both companies under the leadership of D’Angelo, with the objective to support a smooth and efficient cultural and business integration and grow the business. Steve Oetegenn, who has served as president and chief sales and marketing officer of Verimatrix, was appointed chief operating officer for the combined company.
For 100 per cent ownership of Verimatrix stock, Inside Secure paid, at closing, $138.1 million in cash and an additional amount of $9.8 million set in escrow to cover (i) potential post-closing adjustments and (ii) an earn-out, estimated to be $8 million. The final amount of the earn-out will be known in the second quarter of 2019 following completion of year-end audit of Verimatrix earnings.