NW_20010221_en_VASCO to Acquire Global Web Security Software Company Identikey Pty Ltd.
OAKBROOK TERRACE, Ill. and BRUSSELS, Belgium – February 21, 2001 – US-based VASCO Data Security International, Inc. (NASDAQ & EASDAQ: VDSI; www.vasco.com), a global provider of security solutions that enable e-business and e-commerce, announced that it has signed a Letter of Intent(the “LOI”) to acquire Identikey Pty Ltd. (www.identikey.com), an international, privately held security software company with headquarters in Australia and operations in the United States and Europe. The acquisition is expected to close by March 31, 2001, subject to customary closing conditions.
According to the terms of the LOI, the purchase price will be paid entirely in shares of VASCO Common Stock. The value of the acquisition as of thedate of the LOI is approximately USD $3 million, with additional earnout payments possible based on certain performance incentives. The value and nature of these incentives have not been disclosed. VASCO expects the acquisition to be neutral to the Company’s earnings per share for the 12 months following the acquisition, and significantly accretive after that period.
Identikey’s family of web security software products allow corporations, financial institutions, and governments to quickly secure access to web portals with advanced strong authentication, authorization, and management capabilities that support e-business and e-commerce initiatives. International Data Corporation expects the market for authentication, authorization, and administration (3A) software to be $7.1 billion by 2004, up from $2.1 billion in 1999. With VASCO’s entire family of Digipass products already integrated into the complete Identikey product line, organizations can choose a turnkey web portal security solution including Digipass strong two-factor authentication and e-signature capabilities, at an affordable purchase price and low total cost of ownership.
The Identikey software offers VASCO a web authorization product that extends security beyond the LAN authentication market of SnareWorks SecureServer, providing quick-to-implement web portal security. Organizations looking for full enterprise-wide security with multiplatform support as well as capabilities for providing true Single Sign-On and PKI enablement can draw on VASCO’s SnareWorks enterprise security software. VASCO will market and sell the Identikey product family under its SnareWorks brand, merging the companies’ sales and development operations worldwide. Mark Kefford, Identikey’s founder and president, will also join VASCO’s management team.
“Our acquisition of Identikey will bring affordable and easy-to-implement web portal security within the reach of any corporation, financial institution, or government agency wishing to conduct business on the Internet, safely and securely,” stated Mario Houthooft, President and CEO of VASCO. “Identikey’s people and products will further strengthen VASCO’s position as a world leader in authentication, authorization, and administration software, with the capability to secure the enterprises and e-business initiatives of the world’s largest corporations as well as even the smallest business.”
Mark Kefford of Identikey concurred. “We developed our entire product family specifically to address web portal security as the fastest-growing segment of the security market. Over the past several years, our efforts have been focused on developing software products that are affordable, easy to implement, and simple to manage – eliminating the cost and integration
complexity which present high barriers to entry for organizations wishing to secure their web portals. We’re pleased that VASCO has recognized our security software’s strength in addressing this critical and largely untapped market.”
VASCO secures the enterprise from the mainframe to the Internet with infrastructure solutions that enable secure e-business and e-commerce, protect sensitive information, and safeguard the identity of users. The Company's family of Digipass® and SnareWorks® products offers end-to-end security through strong authentication and digital signature, true Single Sign-On, access control and advanced entitlements, web portal security, and PKI enablement, while sharply reducing the time and effort required to deploy and manage security. VASCO's customers include hundreds of financial institutions, blue-chip corporations, and government agencies in more than 50 countries, among them ABN AMRO Bank, Shell, 3M, Ericsson, Rabobank, SEB, First Union, Liberty Mutual, Cable and Wireless, Nokia, DaimlerChrysler, Volvo, US Department of Defense, European Commission, US Coast Guard, University of Groningen, and Duke University. VASCO's partners include Brokat, Check Point Software Technologies, Computer Associates, Identikey, Intel, Netlife, Novell, Proton World, and Ubizen. More information is available at www.vasco.com.
Forward Looking Statements
Statements made in this news release that relate to future plans, events or performances are forward-looking statements. Any statement containing words such as “believes,” “anticipates,” “plans,” “expects,” and similar words, is forward-looking, and these statements area based on current expectations and involve risks and uncertainties, including, but not limited to, the potential that the Identikey acquisition will not be consummated, variations in quarterly operating results, technological changes, regulation of cryptographic technology and technology exports, and foreign exchange risk, among others. Consequently, actual results could differ materially from the expectations expressed in these forward-looking statements.
Reference is made to the Company's public filings with the US Securities and Exchange Commission for further information regarding the Company and its operations.
For more information contact:
Media: Kerry Roche
+1 617 742 7270
Investor Relations: Todd Fromer
KCSA Public Relations Worldwide
+1 212 682 6300
VASCO: Mike Lange
+1 630 932 8844
Media (Benelux): Nico Tempelaere
+32 2 361 31 20
Media (Europe/Asia): Sven Kersten
+49 89 99 38 87 33
Investor Relations: Annemieke Blondeel
+44 208 308 7080
VASCO: Ariane Bosmans
+32 2 456 9810