Security vendor Identikey will have its chance to realise ambitious plans of international expansion after Nasdaq-listed network security vendor Vasco Data Security International announced its intentions to acquire the Australian startup.
Identikey will provide the missing link for Internet-centric security for Vasco's suite of products, according to Vasco officials, but the acquisition comes as little surprise to many. Vasco had partnered with Identikey for technology since Identikey's inception in 1999, with Vasco's Digipass software integrated into the Identikey product line.
In turn the acquisition, which is expected to be finalised on March 31, 2001, will see Identikey integrated into Vasco's SnareWorks product line for Web security. Identikey's products focus on securing data at the applications level rather than network level, with a specific emphasis on applications travelling across the Internet. Originally developed on behalf of a national real estate agency to ensure the security of its training extranet, Identikey is widely used to secure Web portals, according to company officials.
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.
"The whole of the Internet technology startup industry is under pressure to produce real products rather than just a portal for "eyes to visit", and the purchase offer by Vasco reinforces Identikey's focus to create value as opposed to hype," said Kefford.
However, the acquisition will not see Identikey lose its identity, with research and development continuing in Australia, according to Identikey.
Under the terms of the recently signed letter of intent, the acquisition will be paid entirely in shares of Vasco common stock to an estimated value of $US3 million. Additional earn-out payments and incentives are possible based on performance, Vasco said in a statement made to Nasdaq. The value of these incentives has not been released.
Photograph: Identikey president Mark Kefford