ActivCard S.A. and Authentic8 International, Inc.
announced that, due to current market conditions, the two companies have
agreed to terminate the Stock Purchase Agreement announced previously on
February 18, 2001.
“ActivCard will continue to explore existing and future strategic market
opportunities with Authentic8 as we seek technology licensing and development
alternatives,” said ActivCard Chairman and CEO Jean-Gerard Galvez.
Confirming that customers have found the companies’ solutions
complementary, Authentic8’s Chairman Roger Allen added, “Authentic8 is
continuing to experience strong customer demand for its Internet
Authentication Service and security products having recently won multi-million
dollar orders from two major telecommunications companies, supporting the next
phase of the company’s growth.”
As a result of this decision, ActivCard will take a one-time charge of
approximately US$4.0 million in the first quarter 2001. This charge
represents cumulative costs incurred to effect the proposed Stock Purchase
Agreement as well as break-up costs.
ActivCard management reaffirmed its comfort with analysts’ revenue
expectations for the first quarter 2001, which will be reported on
May 10, 2001.
ActivCard, a leader in digital identity and electronic certification
technology, delivers core components required to enable next generation
e-Business communication and transactions. The ActivCard technology suite
offers the ease-of-use of an ATM transaction with a security level better than
face-to-face meeting. ActivCard solutions, in conjunction with the
applications support for public key based data confidentiality and integrity,
allow individuals and businesses to perform secure online transactions over
the Internet. Today, more than 2 million people use ActivCard products for
secure Internet banking, Web access and remote access to corporate networks.
ActivCard is headquartered in Fremont, California, with worldwide operations
in France, Germany, Japan, Sweden, Singapore and United Kingdom. For more
information, please visit the company’s website at http//www.activcard.com.
Authentic8’s IAS authenticates the digital identity of employees,
customers and partners when they remotely access their organization’s computer