Wave Systems has acquired Israeli company Safend for approximately $12.8 million to expand its portfolio of security and encryption products.
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 of Safend.
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.