Swiss cybersecurity company, WiseKey, has entered into a binding agreement to acquire the semiconductor technology and business of INSIDE Secure, an embedded security solutions provider for mobile and connected devices.
According to the company, the acquisition and technology integration would facilitate the creation of a comprehensive trusted end-to-end cybersecurity platform for people and objects (IoT). Following this acquisition, WISeKey’s cybersecurity offerings will include certified hardware and software, system certification, provisioning and up to management of cybersecurity services.
Carlos Moreira, Chairman and CEO, WISeKey, said:
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 empower 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,” he added.
What would the WiseKey acquisition entail?
The cybersecurity company has revealed that 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.
Furthermore, WISekey states that INSIDE Secure’s integrated circuits will allow its 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.
“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,” added Moreira.
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 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.
Last month, WISeKey joined hands with Microsoft’s partner-led initiative CityNext for a global participation program to encourage and assist leaders to combine technology and innovative ideas to securely connect governments, businesses and citizens.