American company ActivCard will deploy an Australian e-security service globally, following a multi-million dollar takeover deal.
ActivCard will exchange $US25 million in cash and one million shares to the value of approximately AU$80 million to acquire Authentic8's Internet security service, which specialises in smart cards and public key infrastructure (PKI).
The US-based company will retain the name Authentic8 to globalise the service thorughout North America, Europe and Asia.
Authentic8's customers include the Australian Taxation Office, Department of Finance and Administration and UK's British Telecom (BT).
Under the outsourcing deal, businesses will be offered a security service instead of investing time and money in developing their own in-house system.
According to Authentic8's Australian Managing Director Stephen Thompson, "all other companies are selling products, we have bundled it all together as a service. It's like a mobile phone plan."
"The service allows employers to do business on the Internet in a secure way."
The deal will further expand the Australia operation to support global activities, with an extra 15 staff to be employed in R&D over the next 6 months.
"ActivCard have customers all around the world to allow us to access that market faster than doing it on our own," Thompson said.
The service will combine Authentic8's own authentication software together with products and services supplied by strategic partners including Cable & Wireless Optus, Placard, eSign, Baltimore, Computer Associates and Microsoft, to provide an integrated solution.
