Inside Secure Acquires SypherMedia to Boost Its Silicon IP Business and Root-of-Trust Offering
November 07 2017 - 1:30AM
Business Wire
Brings critical security technologies in the
areas of provisioning and protection against semiconductor reverse
engineering and cloning
Inside Secure (Paris:INSD) (Euronext Paris: INSD),
at the heart of security solutions for mobile and connected
devices, today announced that it has acquired SypherMedia
International, Incorporated (“SypherMedia”), a California-based
leading security solutions and services provider, for up to US$10
million, including a potential earn-out of up to US$3 million.
SypherMedia is a key player in embedded security from product
design to product life cycle management. SypherMedia’s secure
provisioning1 solution, a critical piece of a robust root-of-trust2
solution, is used by many leading chipmakers and consumer
electronics manufacturers to address the critical security needs in
the automotive, IoT, mobile, and smart TV markets.
SypherMedia also brings to Inside Secure its process that secure
semiconductor designs during manufacturing, Circuit Camouflage
Technology™, relying on 45 U.S. patents, deployed in established
markets like Pay TV and printer ink cartridges.
Today, SypherMedia serves more than sixty customers worldwide,
based on a licensing model, a significant portion of the revenues
being recurring.
This acquisition is a significant step in the execution of
Inside Secure’s growth strategy to bring security at the heart of
its customer products and solutions. It brings in particular:
- A widely-deployed secure provisioning
capability to enable managing the root of trust of a device through
its entire life cycle, complementing existing portfolio of silicon
IP cores;
- A unique, foundational,
patent-protected chip anti-counterfeiting technology to address
growing security challenges, in particular tampering, IP theft,
reverse engineering and cloning;
- An extension of the company’s
security-as-a-service offerings across the complete value chain,
from chip manufacturing, to device manufacturing, to in-field
services; and
- Short-term upselling opportunities with
Inside Secure’s current customers.
“The acquisition of SypherMedia enables us to accelerate the
execution of our strategy on Silicon IP business towards embedded
security solutions that combine product and service offerings,
aiming at generating recurring revenues,” said Amedeo D’Angelo,
President and Chief Executive Officer of Inside Secure. “This is a
great opportunity to complement our existing offering and
accelerate our ability to provide our customers with complete
solutions that bring security at the heart of their products from
design to the entire chip lifecycle. As an example, combining our
root-of-trust solution and SypherMedia’s provisioning is key to
bring security to the growing IoT and automotive markets. All in
all, bringing SypherMedia onboard creates substantial value for our
customers, our employees and our shareholders.”
“Inside Secure is the ideal buyer for SypherMedia, with strong
technical synergies and a worldwide sales and marketing
organization to help us bring our technology to new geographies and
markets,” said Dennis Flaharty, Chief Executive Officer of
SypherMedia; “The entire SypherMedia team is excited to join Inside
Secure today.”
At closing, Inside Secure paid US$7 million in cash, and could
pay an additional cash amount of up to US$3 million in the years
2019, 2020 and 2021 (up to US$1 million each year), subject to
completion of certain revenue targets for the calendar years 2018,
2019 and 2020.
Conference Call
The details of the transaction will be discussed on a
teleconference call to be held on November 7, 2017 at 11:00 Paris
time (10:00 London and 05:00 New York). The call will be accessible
by dialing one of the following numbers: +33 170 710 159 (from
France), +1 844 286 06 43 (from the US) and +44 207 194 37 59 (from
other countries) with the following conference ID: 00815920#. The
presentation for the conference call can be downloaded from the
Inside Secure investor website. An audio webcast of the
presentation and the Q&A session will be available on the
Inside Secure investor website approximately three hours after the
end of the presentation and will remain posted there for one
year.
About Inside Secure
Inside Secure (Euronext Paris – INSD) is at the heart of
security solutions for mobile and connected devices, providing
software, silicon IP, tools, services, and know-how needed to
protect customers’ transactions, ID, content, applications, and
communications. With its deep security expertise and experience,
the company delivers products having advanced and differentiated
technical capabilities that span the entire range of security
requirement levels to serve the demanding markets of network
security, IoT and System-on-Chip security, video content and
entertainment, mobile payment and banking, enterprise and telecom.
Inside Secure’s technology protects solutions for a broad range of
customers including service providers, operators, content
distributors, security system integrators, device makers and
semiconductor manufacturers. For more information, visit
www.insidesecure.com
Forward-looking statements
This press release contains certain forward-looking statements
concerning the Inside Secure group. Although Inside Secure believes
its expectations to be based on reasonable assumptions, they do not
constitute guarantees of future performance. Accordingly, the
Company’s actual results may differ materially from those
anticipated in these forward-looking statements owing to a number
of risks and uncertainties. For a more detailed description of
these risks and uncertainties, please refer to the "Risk factors"
section of the 2016 registration document filed with the French
financial market authority (the Autorité des marchés financiers –
the “AMF”) on March 28, 2017 under number D.17-0244, available on
www.insidesecure-finance.com/en
1 Provisioning is the injection of keys, credentials, data,
tokens into a personalized device either at manufacturing, or in
the field or Over-The-Air to enable secure applications and
services.2 Root of trust (or RoT) is the foundation for the
trustworthiness of a device or a system. Roots of trust are
hardware/software components that are inherently trusted. RoT a set
of functions that constitutes a common trust anchor recognized by
operating systems and applications of a device. It is ensuring
authentication, confidentiality and integrity of data and
transactions.
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version on businesswire.com: http://www.businesswire.com/news/home/20171106006490/en/
Press and investorsInside SecureCorporate
communicationsLoic Hamon, +33 (0) 4 42 905 905EVP, Corporate
Development and
Communicationcommunication@insidesecure.comorInside
SecureInvestor relationsRichard Vacher Detournière, +33
(0) 4 42 905 905General Manager &
CFOcontactinvestisseurs@insidesecure.com
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