GENEVA & ZUG, Switzerland--(BUSINESS WIRE)--WISeKey International Holding Ltd (“WISeKey”, SIX: WIHN), a leading cybersecurity company announced today that it has concluded the acquisition of the secure Internet of Things (“IoT”) integrated circuit solutions and semiconductor business from INSIDE Secure (Euronext Paris: INSD), a leader in embedded security solutions for mobile and connected devices.
The acquisition and technology integration of the Vault IC semiconductor business with WISeKey’s unique Root of Trust and Identity technology have created the first ever comprehensive trusted end-to-end cybersecurity platform for people and objects (IoT). This vertical integration from Vault IC hardware & software, system certification, provisioning and up to management of services will allow WISeKey to deliver the most secure Platform to its customers.
The successful transaction includes the transfer of products, technology, customer agreements, and certain patents from INSIDE Secure to WISeKey including the development and sale of secure integrated circuits designed to secure and power the strongly growing IoT market. Additionally, through this transaction, WISeKey will add a team of 70 people in areas such as R&D, sales, marketing and support to its overall staff amounting to a total of over 140 people, including staff in Switzerland, Vietnam, USA, Japan, Taiwan and Singapore, giving WISeKey a global reach.
The acquisition allows WISeKey to generate strong sales in new areas such as chip based IoT, anti-counterfeiting, brand protection, EMV payment card and secure access to building IT equipment. Of note, the business acquired from INSIDE Secure is expected to generate revenue (pro forma unaudited) of US$34 million in 2016 and generated approximately (pro forma unaudited) US$33 million revenue in 2015.
This acquisition, will provide synergistic cross-selling opportunities for the combined company. Specifically:
- WISeKey will be able to offer its existing platform to over 20 INSIDE Secure clients including world leaders in IT infrastructure, smart metering and identification token technology such as CISCO, Landis + Gir and Gemalto which are already using the chips to secure their hardware, while the integrated circuit solutions and semiconductor technology acquired from INSIDE Secure will be offered to WISeKey’s current clients such as watch manufacturers.
- WISeKey’s recent agreements should also drive additional revenue growth for the combined company by integrating the Vault IC solution with SAP’s industry-leading solutions as announced by both companies, reinforcing the current cybersecurity of SAP HANA, and also via the signed partnerships with Microsoft on CityNext and MasterCard on authentication and payment for wearable devices.
- WISeKey could generate operational synergies from its expanded offerings and potentially increasing applications in a nascent IoT market via its strategic partnership with CenturyLink. As previously announced, CentruryLink is acting as managed service provider for WISeKey technology in USA and abroad among Nasdaq top 500 companies currently using CenturyLink technologies.
WISeKey’s Swiss based cryptographic RootKey brings the highest level of neutrality which opens new client acquisition streams specifically in the IoT and Industrial Internet markets requiring large deployment of trusted Digital Identities.
“We are thrilled to complete this acquisition. The acquisition of Vault IC is part of the new WISeKey strategy of buying strong and unique technology companies to reinforce its Vertical Cybersecurity Platform and creating strategic partnerships with companies with strong presence in areas such as IoT, cybersecurity, Quantum, AI and Blockchain. WISeKey intends to continue to grow its business through complementary acquisitions and/or partnerships”, said Carlos Moreira, Founder and CEO of WISeKey.
INSIDE Secure has received CHF2 million in cash (net of transferred cash) together with a convertible loan note redeemable into WISeKey International Holding Ltd Class B listed shares for an amount of CHF11 million. The convertible loan note would have a 9-month maturity, bear a 2% coupon and could be converted at the option of INSIDE Secure, after a 2-month lock-up period, into freely tradeable Class B shares with a minimum 10% discount on the volume-weighted average quoted price during the 15 trading days prior to the conversion date. WISeKey would have a right to redeem the convertible loan note in cash, and INSIDE Secure may request, 20 days prior to maturity, redemption in cash for up to 30% of the principal amount of the convertible loan note.
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 and know-how needed to protect customers’ transactions, 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 security, content & application protection, mobile payment & banking. INSIDE Secure’s technology protects solutions for a broad range of customers including service providers, content distributors, security system integrators, device vendors and semiconductor manufacturers. For more information, visit http://www.insidesecure.com.
WISeKey WISeKey International Holding Ltd (“WISeKey”, SIX: WIHN) is a leading cybersecurity company and selected as a World Economic Forum Global Growth Company. WISeKey is currently deploying large scale Internet of Things (“IoT”) digital identity ecosystems and has become a pioneer of the 4th Industrial Revolution movement launched this year at the World Economic Forum in Davos. WISeKey’s Swiss based Cryptographic Root of Trust (RoT) integrates wearable technology with secure authentication and identification, in both physical and virtual environments, and empowers IoT and wearable devices to become secure transactional devices. WISeKey has patented this process in the USA as it is currently used by many IoT providers. For more information, visit www.wisekey.com.
This communication expressly or implicitly contains certain forward-looking statements concerning WISeKey International Holding Ltd and its business. Such statements involve certain known and unknown risks, uncertainties and other factors, which could cause the actual results, financial condition, performance or achievements of WISeKey International Holding Ltd to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. WISeKey International Holding Ltd is providing this communication as of this date and does not undertake to update any forward-looking statements contained herein as a result of new information, future events or otherwise.
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