Inside Secure completes purchase of ESS

Acquisition is designed to expand Inside Secure’s presence in the security solutions market

Tags: Inside Secure (www.insidesecure.com)Mergers and acquisitions
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Inside Secure completes purchase of ESS Inside secure has completed its acquisition of Embedded Security Solutions.
By  Georgina Enzer Published  December 3, 2012

Inside Secure has completed the acquisition of Embedded Security Solutions (ESS). ESS is a high expertise business which designs and develops encryption-related security hardware intellectual property (IP) and software for a variety of industries, including the mobile and networking markets.

Inside Secure paid a transaction consideration of $41.6 million net of cash acquired, after an adjustment based on the estimated working capital of the transferred business at closing and completion of certain closing-related transactions. Inside Secure may pay an additional cash consideration of up to $5.2 million subject to completion of certain transactions before April 1st, 2013.

This acquisition is designed to enable Inside Secure to reinforce its position as a key player in the fast-growing security solutions market. ESS will bring to Inside Secure complementary offerings for a complete security architecture, as well as additional solutions for securing both content (Digital Rights Management or "DRM") and data exchange (Virtual Private Network or "VPN"). By leveraging the strong capabilities of Inside Secure's existing Mobile NFC and Digital Security businesses, the combined offer should also lead to additional sales in high growth markets. The transaction is expected to be accretive to Inside Secure's adjusted operating and net results as of 2013, and to enhance the company's gross margin. 

As a result of this acquisition, Simon Blake-Wilson, vice president of ESS since 2006, has been appointed executive vice president in charge of Inside Secure's Embedded Security Solutions division. Simon Blake-Wilson has a proven track record in digital security solutions.

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