According to statement released by Verimatrix Chairman and CEO, Amedeo D’Angelo, ‘We are pleased to announce this exclusivity agreement to sell our silicon IP and secure protocols business unit to Rambus, a premier silicon IP and chip provider, this transaction ideally fits with our strategy to focus our company as a pure player in software based security solutions. After completion , we will have the agility to fully address promising growth market such as entertainment, mobile application and the internet of things. Additionally, the transaction will significantly increase our financial flexibility to seize external growth opportunities and reinforce our commitment to bringing the best value proposition to our customers. “The Silicon IP, Secure Protocols and Provisioning business from Verimatrix is at the forefront of securing connected semiconductors,” said Amedeo, integrating the Verimatrix embedded security team into Rambus, a recognized leader in hardware-based security, will deliver the most comprehensive portfolio of security solutions in the industry.”
The highlights of the agreements between these two organizations include;
- An increase in the focus of the company to enhance the software- based security and also solutions that are business intelligence focused to provide a total revenue generation of about $100 million.
- An increase in the flexibility if finances as a result of the strong balance sheet mode that helps to increase growth rate and also build their hold in the software based security industry.
- A total transaction amount of about $65 million in cash.
Verimatrix SIP business unit is known as a sole generator of about $22 million revenue alone, the unit thereby is representing 17% of the company’s revenue, for an EBITDA2 margin consistent with the one of the company overall, it is also important to note that it is operated by a team of about 72 people based in Europe, the U.S. and Asia.
According to Luc Seraphin, the president and CEO at Rambus, “the embedded security team at Verimatrix has a well recognized and longstanding history of providing security at the heart of SoCs, their combination of products and expertise is highly complementary to our existing business and will expand our global reach for our worldwide security customer base.
Acquisition of the Silicon protocols will help to provide specific clients such as semiconductor manufacturers and fabless companies, device manufacturers and security software integrators with solutions That will aid in management of intellectual properties and also software toolkits, specifically in areas such as Internet of Things and also in the Network Security markets.
Verimatrix, formerly known as Inside Secure, is a known world supplier of solutions in security and analytics, they help clients to protect their applications, services and also devices.
This agreement between the two organizations is a response to the increasing overwhelming security threats that has threatened most businesses in the industry. Clients will now be provided with highest quality deployable embedded security in the market as its result.
The full agreement is expected to come to a final closing by the last quarter of the year 2019.