RSA to acquire Xcert

RSA Security plans to acquire digital-certificate developer Xcert to boost market share and revenues.

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By  Jon Tullett Published  February 6, 2001

RSA Security has announced that it has signed an agreement to acquire Xcert International, a privately held company that develops and delivers digital certificate-based products for securing e-business transactions.

RSA said it is acquiring Xcert to increase its public key infrastructure (PKI) market share and revenues, to enhance its ability to secure applications that serve the B2B and Internet markets and to add talent that will assist with the acceleration of its PKI product calendar. Following the closing of the acquisition, the Xcert Sentry certificate issuance and management solution will become a member of the RSA Keon family of PKI products. Plans are currently away to deliver an integrated certificate authority product that combines the best features of the Sentry product and RSA Keon Certificate Server in Q4 2001.

“RSA Security’s acquisition of Xcert is an important step toward achieving our goal of leading the PKI marketplace and maintaining a faster growth rate for PKI revenues and market share than any other vendor,” said Art Coviello, CEO and president of RSA Security. “Through this acquisition, we are adding more than 50 Internet-centric customers, including Aetna, American Management Systems, Marconi, PNC Bank and Wachovia. In addition, Xcert brings RSA Security a notable set of OEM customers, including eOriginal and Digital Signature Trust (DST), who are using the Sentry CA as the infrastructure for their own certificate issuance services.”

The consideration for the acquisition is approximately $67.5 million in cash, plus acquisition costs. RSA Security will account for this transaction using purchase accounting. It is anticipated that the closing will occur in February 2001, subject to customary closing conditions. The company expects this transaction to be breakeven in Q3 of 2001 and accretive in Q4 of 2001, excluding goodwill amortisation.

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