SuperCom has acquired Safend, a global data security company with a broad range of competitive and well-known encryption and data protection solutions.
The acquisition is in line with SuperCom’s stated strategy to offer complementary security products and solutions to its growing customer base.
Safend is an international provider of cutting edge endpoint data protection, guarding against corporate data loss and theft through content discovery and inspection, encryption methodologies, and comprehensive device and port control.
Safend maps sensitive information and controls data flow through email, web, external devices and additional channels. Founded in 2003 and headquartered in Tel Aviv, Israel, Safend has over 3,000 customers in the United States, Europe, and Asia, and more than three million software license seats deployed by multinational enterprises, government agencies and small to mid-size companies around the globe.
Safend will also continue to provide full support, services and upgrades for its award winning Data Protection Suite, including Safend Discoverer, Safend Inspector, Safend Encryptor, Safend Protector, Safend Auditor, and Safend Reporter.
Safend’s average annual revenue in recent years as a subsidiary of Wave Systems Corp. was approximately $5 million with typical software licensing gross margins. The majority of these sales were generated through Wave Systems Corp. and its worldwide distribution network, which will no longer be available to distribute Safend products.
Going forward, while the high level of service and support will continue as usual by the Safend team, new sales will be generated through Safend and SuperCom’s global distribution channels. As a result of this transition, the level of annual revenues from Safend’s products in the near future is uncertain, but expected to grow and exceed historical levels after proper absorption into the new sales channels.
In consideration for this acquisition, SuperCom will provide Safend up to $1.5m of working capital to support its activity and growth through a structured debt and equity vehicle.
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