Melbourne-based developer, Senetas, has extended a development relationship with SafeNet to distribute the US security vendor's product range in Australia.
The exclusive agreement sealed a two-year working relationship that saw Senetas encryption technology incorporated under licence into SafeNet enterprise security products.
The companies were now at the next stage in their relationship, Senetas CEO and chairman, Francis Galbally, said.
"As our relationship has become closer and we've integrated more of our technology, we thought it was time to go to market under an exclusive arrangement with SafeNet products in the Australian market," he said.
ASX-listed Senetas planned to use its services arm to distribute the Safenet range through existing system integrator relationships, Galbally said. He declined to name those integrators at this stage but said the companies were major players in the Australian market.
Government, banking, telecommunications and finance were strong vertical market prospects, Galbally said.
Existing SafeNet customers using its iKey device in the region include Telstra. This was a significant account, Galbally said, that brought in annual revenues of about $US1 million.
Commenting on the agreement, SafeNet vice-president and general manager, Chris Fredde, said the move in Australia replicated its global channel model.
"We sell through system integrators on a global basis and Senetas have also found this is the best channel for selling enterprise level security," he said.
SafeNet's products range from USB-style security devices to high-end wide area network encryption hardware using ATM and SONET industry standard telephony protocols.
Similarly, Senetas' niche focus is on high-speed network encryption devices which it sells to government, banks and financial organisations.
Senetas business overseas will also benefit from the new agreement. It already has large customers in America, including the US Department of Defence, and the global agreement means its products will be distributed in the USA by SafeNet.
In Australia, Senatas customers include the Federal Police, NAB, the ATO, the Federal Department of Health and DFAT. For its services business, customers include Telstra, and Coles Myer.
SafeNet expects strong growth from the Australian and New Zealand region with revenues of $US15 million to $US20 million projected for the next two to three years.
Increasing corporate diligence and legislative requirements were the biggest security market drivers, Fredde said.