WISeKey International Holding, a leading Swiss cybersecurity company, announced that it has entered into a binding agreement to acquire the semiconductor technology and business of INSIDE Secure, a leader in embedded security solutions for mobile and connected devices.
The acquisition and technology integration will create the first ever comprehensive trusted end-to-end cybersecurity platform for people and objects (IoT). Following this acquisition, WISeKey’s cybersecurity offerings will include certified hardware & software, system certification, provisioning and up to management of cybersecurity services. This transaction represents the final stage in the process of repositioning INSIDE Secure’s software security and technology licensing to be able to meet the needs of the rapidly expanding mobile payment and mobile banking markets and to also provide embedded security technology licenses for Internet of Things (IoT) markets.
The scope of the transaction would include the transfer of products, technology, customer agreements, and certain patents. More specifically, it would include the transfer of assets related to the development and sale of secure integrated circuits for the strongly growing IoT market as well as a complete team in R&D, sales, marketing and support. The activities of INSIDE Secure to be acquired for IoT, anti-counterfeiting, brand protection, EMV payment card and secure access generated pro forma revenue (unaudited) of US$33.6 million in 2015. Ongoing support and solutions would be provided to existing INSIDE Secure customers for current products and development projects to ensure a smooth customer transition.
The terms and conditions of the transaction are in line with those announced on May 19, 2016. Upon completion of the transaction, WISeKey will pay INSIDE Secure CHF2 million in cash (net of transferred cash) plus bonds convertible into listed shares of WISeKey International Holding Ltd worth CHF11 million.
The transaction is due to close in September 2016 and is subject to customary closing conditions, and to the French finance ministry’s approval since it involves the acquisition of control by a foreign company of a business operating in a strategically important area (provision of cryptology capabilities and services).
Creating the first comprehensive trusted end-to-end cybersecurity platform for people and objects (IoT)
Thanks to WISeKey solutions, IoT devices would be able to organize themselves into trusted networks based on mutual authentication, identity and integrity. This trusted cybersecurity platform will only enable IoT devices which can provide a recognized identity and a valid integrity report to communicate with peer devices that are part of the trusted community.
INSIDE Secure’s integrated circuits will allow WISeKey’s cryptographic Root of Trust (“RoT”) and digital certificates to be hosted on a hardware vault that has received the highest level of certification to encrypt the communication and authenticate the devices. Furthermore, it leverages the massive deployment of WISeKey’s RoT now embedded in more than 2.5 billion devices worldwide benefitting from the strong cryptographic capabilities to operate on induced power, allowing to be deployed in all sorts of IoT products.
Addressing fast growing IoT market
The ability to authenticate and remotely manage millions of networked, automated devices and equipment is becoming pervasive − from the factory floor, to the hospital operating room, to the residential home − everything, from refrigerators, watches, wearables to wine bottles, is connecting and communicating via the Internet.
The Internet of Things security market is expected to grow from $6.89 billion in 2015 to nearly $29 billion by 2020 according to a report published by Markets and Markets, thus growing at an annual rate of 35% over the next five years. These massively deployed connected objects are facing regular attacks hence generating a large need for trusted end-to-end cybersecurity solutions.
Chairman and CEO of WISeKey, Carlos Moreira commented on the envisaged acquisition: “With this acquisition, customers can directly purchase trusted end-to-end cybersecurity solutions from WISeKey, embedding personalization within Integrated Circuits and having the highest level of security certification. As an example, WISeKey’s cryptographic RoT combined with the acquired INSIDE Secure’s technology will enable wearable devices to connect safely and make secure transactions including payments. WISeKey technology will empowers IoT devices to be authenticated with digital identities via a trusted platform and/or blockchains before agreeing to communicate. I believe such a comprehensive trusted end-to-end cybersecurity platform will enable the optimum level of security to safely develop interactions in a world of connected people and objects.”
Mr. Moreira added, “The acquisition of INSIDE Secure will significantly drive both short- and long-term revenue growth for WISeKey and also accelerate our strategy for global expansion. We are very excited about the opportunities ahead, and what we will be able to accomplish by working together with INSIDE Secure team.”
For more information, visit www.wisekey.com.