IronKey shed its USB-based security hardware business for portable devices in order to expand its cloud-based security platform and reach new customers.
has sold its USB-based security hardware business to Imation, freeing up
resources for IronKey to focus on its cloud-based security services for
the sales agreement, Imation will acquire the assets of IronKey's secure data
storage hardware business for an undisclosed amount, the companies announced on
Sept. 20. As part of the deal, expected to close within 30 days, IronKey will
make its cloud-based security services available to Imation.
two companies also signed a strategic multiyear partnership that will enable
Imation to offer customers a steadily expanding toolset to manage mobile
devices, encryption, security policies, fraud prevention and virtualized
acquisition also will allow Imation to offer cloud-based services while it
continues to focus on hardware to secure mobile devices, portable storage and
data removal media, Lawrence Reusing, general manager of Imation Mobile
Security Group, told eWEEK
acquisition is a "real win-win" for IronKey and Imation, Dave Jevans,
founder and chairman of IronKey and of the Anti-Phishing Working Group, told eWEEK
. Imation's global reach means the
company has the capability to scale the secure storage business much faster
than what IronKey could accomplish, Jevans said.
acquired secure storage products and technologies such as the multifunction
portable computing devices that protect stored data with strong hardware
encryption. IronKey combined the portable devices with the cloud-based IronKey
Enterprise Management Service to provide comprehensive data security. IronKey's
banking product is used by financial institutions to secure online banking and
reduce online fraud.
the partnership, Imation will receive an exclusive license from IronKey for the
secure storage management software and service along with a license to use the
IronKey brand for its secure storage products.
will "accelerate" its focus to grow its cloud-based security
portfolio, said IronKey CEO Arthur Wong. The Trusted Access security platform
will be expanded to enable all enterprises-not just financial institutions-to
protect assets, data and transactions, according to Wong. IronKey will support
multiple form factors and applications, including portable USB devices,
software and mobile applications for IronKey Trusted Access and other new
IronKey security services, Wong said.
40 employees at IronKey were associated with the hardware side of the business,
and they are expected to move to Imation, while the remainder of the team will
stay with IronKey, Jevans said. Current IronKey Trusted Access customers will
continue to receive product support through IronKey, while the secure storage
customers and partners will be transferred to Imation.
the partnership agreement doesn't specify any technology sharing or
collaboration, Reusing expects the companies to engage in
"idea-sharing." The collaboration agreement will have the two
companies working together to reach customers.
is focused on enabling enterprises and government agencies to safely adopt the
economic benefits of mobile and cloud computing amidst increasingly
sophisticated cyber-attacks," Jevans said.
will help push IronKey's service to its customers. There was very little
overlap between the customer bases, according to Scott Ashdown, director of
products and solutions at Imation Mobile Security Group. Imation also has an
OEM relationship where some of its devices are distributed by McAfee, which
will remain unaffected by the IronKey deal, according to Ashdown.