Vector buys security firm Aladdin
Private equity firm builds up information security portfolio
Private equity firm Vector Capital has agreed to acquire Israeli security tools firm Aladdin Knowledge Systems in a deal valued at $160m.
Under the terms of an agreement, announced on Monday, Aladdin shareholders will receive $11.50 per share in cash, a premium of approximately 20 per cent on Aladdin's closing price on 9 January and 64 per cent up on its value on 5 January, when Aladdin announced it was in talks with Vector about getting hitched.
Vector already owns Safenet, a network security firm established by former NSA spooks in the late 1980s. Aladdin's DRM, authentication and content security products will be added to Safenet wireless, Wan, and DRM technology, once the deal (which is subject to regulatory and shareholder approval) goes through. Vector expects to have dot all the Is and cross all the Ts on the transaction within three months. ®