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SafeNet Acquires DMDsecure.com
SecurityProNews
Staff Writer
2005-03-24
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SafeNet 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.
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SecurityProNews is a daily online and email publication focusing on internet security issues.
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