Acquisition Combines Leader in Data Protection with Cloud Visionary
In a transaction that will significantly broaden and deepen the authentication and cloud-based services it offers to clients, SafeNet, today announced that it has acquired Cryptocard, a privately held leader of cloud based authentication solutions. Financial terms were not disclosed.
With the acquisition of Cryptocard, SafeNet significantly enhances its market leading authentication portfolio, providing both enterprises and service providers with one of the most advanced authentication-as-a- service (Auth-as-a-Service) offerings in the marketplace. Cryptocard’s platform will provide a unique opportunity for mobile and telecom service providers, as well as IT system integrators and service providers, to rapidly introduce Auth-as-a-Service and market leading authentication solutions to their end users.
By combining SafeNet’s Fully Trusted Authentication Solutions with Cryptocard’s innovative & flexible Blackshield Cloud platform, SafeNet’s customers worldwide will now have access to secure, flexible and cost-effective on-premise and as-a-service solutions.
“As data continues to proliferate and move beyond traditional perimeters, both enterprise and government customers are demanding solutions that protect and control data and identities across networks, mobile devices and to and from the cloud,” said Chris Fedde, President and Chief Executive Officer of SafeNet. “By joining forces and engaging SafeNet’s global scale, we are uniquely positioned to help customers around the world accelerate the migration to and from the cloud in the most secure and cost effective manner.”
The acquisition will also expand SafeNet’s addressable market opportunity, solidifying the company’s leadership position in user authentication and strongly positioning the company to capitalize on the fast-growing Auth-as-a-Service and cloud services markets.
According to Gartner Inc.’s January 2012 “Magic Quadrant for User Authentication” report, Ant Allan, Vice President, stated, “The user authentication market is expected to grow by approximately 30 percent in the upcoming year. Gartner predicts that, by 2017, more than 50 percent of enterprises will choose cloud-based services as the delivery option for new or refreshed user authentication implementations, up from less than 10% today. However, it is likely that on-premise solutions will persist, especially in more risk averse enterprises that want to retain control of identity administration, credentialing and verification.”
Together, the combined company’s product and service offerings will enable customers to more effectively tailor, deploy and manage their authentication strategies to meet both current and future business needs. The addition of Cryptocard’s Auth-as-a-Service capabilities will help customers worldwide accelerate the deployment of authentication solutions, with improved flexibility and at a lower cost. In addition, SafeNet’s large global presence will enable the expansion of Cryptocard’s Auth-as-a-Service portfolio to APAC and across the broader EMEA and Americas markets.
“As mobile and cloud computing began to transform the security industry, Cryptocard saw a need to develop cloud based authentication solutions and a platform that would help our service provider and enterprise customers meet the emerging needs of this new security landscape,” said Neil Hollister, Chairman and Chief Executive Officer, Cryptocard. “Our unique platform for delivering Authentication-as-a Service is powerful, easy to deploy and helps our customers secure their most sensitive data against current and future security threats.”
Gartner Inc. has recognized both SafeNet and Cryptocard in its January 17, 2012 publication, titled “Magic Quadrant for User Authentication”. SafeNet was positioned as a Leader in Gartner’s “Magic Quadrant for User Authentication”. Cryptocard was positioned as a Visionary in Gartner’s “Magic Quadrant for User Authentication”.