Wave Systems acquired Safend, a provider of endpoint data loss prevention, including port and device control, encryption for removable media, content inspection and discovery.
Wave Systems has acquired Israeli company Safend for
approximately $12.8 million to expand its portfolio of security and encryption
The Cupertino Calif-based paid $1.1 million in cash and 5.2
million shares of Wave Systems common stock, valued at $2.214 per share to
close the deal, Wave Systems said Sept 22.
The addition of Safend's portfolio of encryption
technologies to Wave Systems will create strong cross-selling opportunities in
industries such as healthcare, financial services and government where data
protection is a high priority, Brian Berger, executive vice-president of
marketing and sales at Wave Systems, told eWEEK. Safend offers endpoint data
loss prevention, such as port and device control, encryption for removable
devices, content inspection and discovery.
The companies are already operating as one company, Berger said,
adding, It's "business as usual" for all the teams, except the sales
and support teams now have a bigger list of products to work with.
Safend's data leak prevention and encryption software
"complements" Wave Systems' data encryption and device authentication
products, Berger said. The acquisition gives Wave Systems new products in
removable media encryption, data leak prevention, endpoint monitoring, malware
protection and mobile security.
Safend "increases the depth and breadth" of the
Wave portfolio, Berger said. With Safend's Encryptor product, Wave can offer
full-disk encryption software to customers that do not have self-encrypting
drives or still require support for legacy platforms.
The combined companies will be able to "support
customers beyond the PC" as the market shifts towards hardware-based
security, he added. Wave Systems will be
able to deliver a holistic trusted computing management platform that combines
software security with Trusted Computing technologies to provide customers with
hardware-based security. Enterprises are increasingly looking at the Trusted
Computing platform to meet their security needs, according to Berger.
"With the escalation
of cyber threats and an increasingly mobile workforce, many customers are
looking for an integrated and cohesive security solution across the data
lifecycle-from data-at-rest to data-in-motion and, ultimately, to archiving,"
said Steven Sprague, Wave Systems CEO and president.
For the time being, products will be sold in parallel, but
the products will likely be integrated in the future.
"We haven't announced our mobile security plans
yet," but it's on the roadmap and customers have been demanding it, Berger
said. Safend's mobile e-mail proxy would allow Wave Systems to offer security
products for smartphones and tablets.
Headquartered in Tel Aviv, Israel with one office in Philadelphia,
Safend has 70 employees. The entire executive team, including founder Gil
Sever, is expected to move over to Wave Systems, said Edy Almer, vice-president
Wave Systems also gains access to Safend's reseller channel
and direct sales force to open new market opportunities, especially in vertical
markets and in regions where Wave Systems has not traditionally been strong,
according to Berger. The company will be able to advance relationships with
OEMs, customers and channel partners. Safend also gains from the deal by becoming
part of a larger company that can provide access to more customers, especially
for its encryption software, Almer added.