Removable storage device maker Imation decided March 3 to quit licensing its security software and simply buy a key supplier, Encryptx Corp.
Terms of the transaction were not disclosed. Ten of Broomfield, Colo.-based Encryptx’s 11 employees will transfer to Imation, the company said.
Encryptx is not to be confused with EncrypTix, Inc., a formerly majority-owned subsidiary of Stamps.com that ceased operations for financial reasons almost exactly 10 years ago (March 12, 2001).
It just made a lot more fiscal sense for Minnesota-based Imation to bring the small security firm into its realm, rather that continue to license the software, and Imation spokeswoman told eWEEK
“Imation has essentially already integrated the encryption technology. Now they’re just purchasing the company outright,” the spokeswoman said.
Encryptx’s portfolio includes encryption, device management and control, and digital-rights-management solutions that protect removable drives, flash drives, CDs, DVDs and PC data. Encryptx products are federally approved for purchase under a U.S. Government ESI/SmartBuy Contract, Imation said.
Imation also owns the Memorex, TDK and XtremeMac brands.