SecureData, a member of the JSE-listed ERP.com Group and the distributor for RSA Security products in Sub-Saharan Africa, today announced that the latter has signed a definitive agreement to acquire Cyota. A privately-held company based in New York City, Cyota delivers online security and anti-fraud solutions to thousands of financial institutions worldwide. RSA Security is purchasing Cyota for total consideration of approximately $145 million, comprised of up to $136 million in cash for all of the outstanding capital stock of Cyota, $5.5 million in cash to fund a three-year retention pool and at least $3.5 million for the assumption of all outstanding Cyota stock options.
The transaction is expected to close within 30 days, subject to any necessary regulatory approvals and customary closing conditions. RSA Security expects this transaction to add approximately $22 million to $25 million in revenue in 2006 and that it will be accretive to earnings for the second half of 2006.
"Today, RSA Security is the leader in protecting online identities and digital assets. Through our combination with Cyota, RSA Security will become the leader in the protection of consumer identities and remote transactions," commented Art Coviello, president and CEO of RSA Security. "Our customers will benefit from enhanced flexibility, and consumers will also be able to enjoy - through their account providers - access to strong authentication and transaction protection solutions that fit their lifestyles and security needs."
With the acquisition of Cyota, RSA Security is extending its leadership position in authentication by expanding its portfolio with new products and services. RSA Security expects to be first-to-market with a risk-based layered authentication approach. This approach will allow customers to choose from a range of authentication techniques - from life questions, watermarking and anomaly detection to digital certificates, tokens and smart cards - depending on the risks posed and desired convenience. Additionally, RSA Security believes that the acquisition will enable the Company to establish itself as a strategic hub for the consumer marketplace, providing the ability to authenticate and protect all aspects of online banking and e-commerce: end-users, merchants and transactions.
"Importantly, Cyota shares our culture of innovation and dedication to customer service," continued Coviello. "Today's agreement will enable us to jointly drive continued innovation and to build shareholder value over the long-term."
In addition to expanding RSA Security's authentication offerings, Cyota's technologies are opening up new market opportunities for the Company by adding anti-fraud and transaction protection services to the portfolio. These include: an anti-phishing service that provides 24x7 detection of phishing attacks, alerts to customers and fraudulent site shut-down; a transaction protection service that authenticates online credit card users and supports initiatives such as Verified by Visa sm, MasterCard SecurCode and JCB J/Secure; Cyota's risk-analytics techniques to identify fraudulent activity in accounts; and Cyota's eFraudNetwork, a recognised leading cross-bank collaborative online fraud network.
"We are excited to join forces with RSA Security, a world leader in security," added Naftali Bennett, CEO and co-founder of Cyota. "I am confident that Cyota's people will continue to display the same kind of enthusiasm, rapid innovation and devoted customer service that has been our trademark in this industry."
For further information, please contact Andrew Ochse at tel. +27 11 257 8600; fax +27 11 257 8699; e-mail andrewo@securedata.co.za.
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RSA Security Inc. helps organisations confidently protect identities and information access. The company secures more than 15 million user identities, safeguards trillions of business transactions annually, and manages the confidentiality of data in tens of thousands of applications worldwide. RSA Security's portfolio of award-winning solutions, including identity and access management, secure mobile and remote access, secure enterprise access, secure transactions and consumer identity protection, sets the standard in the industry. Their strong reputation is built on a 20-year history of ingenuity, leadership and proven technologies, and their 17 000+ customers around the globe. Together with more than 1 000 technology and integration partners, RSA Security inspires confidence in everyone to experience the power and promise of the Internet.
SecureData
SecureData, an ERP.com company, is Africa's Premier IT Security Solution Provider. SecureData's solutions incorporate Antivirus and Content Security, Network Security, Intrusion Prevention software, and Network Asset Management. SecureData's comprehensive "Managed Security Services" include design, audit, implementation, vulnerability assessment, outsourcing and hosting. SecureData distributes, sells and supports category leading IT security products to the public, corporate and SME sectors throughout Africa as well as products and services to the SOHO and consumer markets through partnerships with ISPs. As well as being the sole distributor in Sub-Saharan Africa for Trend Micro, SecureData is the African distributor for USA-based TippingPoint Technologies and the Southern African distributor for USA-based Application Security, eEye, Rocket Software, RSA Security, St Bernard and Websense. For more information, visit SecureData at www.securedata.co.za
ERP.com
ERP.com is a JSE-listed company focused on the implementation, integration and management of enterprise applications in an e-business environment. For more information, visit ERP.com at www.erpcom.co.za
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