Inside Secure (Euronext Paris:INSD), at the heart of security solutions for mobile and connected devices, today announced the successful completion of the acquisition of Verimatrix.
The combination accelerates the companys 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.
Commenting on this announcement, Amedeo D’Angelo, chairman and CEO of the combined company stated: I am thrilled to welcome the Verimatrix team and expertise to create a strong force in cloud-based security and analytics. 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 reflects the strengths and capabilities of both companies under the leadership of Amedeo DAngelo, 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% 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.
William Blair acted as financial advisor and McDermott Will & Emery served as legal counsel to Verimatrix in connection with the transaction, and Jones Day served as legal counsel to Inside Secure.
Financial reporting calendar
|Full-year 2018 results|| March 6, 2019 after market close
Conference call on March 7 at 830am (Paris time)
About Inside Secure
Inside Secure (Euronext Paris “ INSD) is at the heart of security solutions for mobile and connected devices, providing software, silicon IP, tools, services, and know-how needed to protect customers transactions, ID, content, applications, and communications. With its deep security expertise and experience, the company delivers products having advanced and differentiated technical capabilities that span the entire range of security requirement levels to serve the demanding markets of network security, IoT and System-on-Chip security, video content and entertainment, mobile payment and banking, enterprise and telecom. Inside Secures technology protects solutions for a broad range of customers, including service providers, operators, content distributors, security system integrators, device makers and semiconductor manufacturers. For more information, visit www.insidesecure.com.
Verimatrix specializes in enhancing and securing revenue for connected devices and IP-based services around the world. Recognizing the need to improve digital exchange between content providers and video service operators, Verimatrix offers Viewthority„¢, a connected content distribution platform that leverages its award-winning VCAS„¢ security and Verspective Analytics solutions, and unmatched partner ecosystem to reduce the costs and complexities associated with legacy distribution workflows. For more information, visit www.verimatrix.com.
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