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nCipher acquires Californian company

Written by Sam Fountain

Wednesday, 12 December 2007

Encryption and database security technology company, nCipher, has added to its product range and unlocked North American expansion opportunities with a $1.95m (£950k) purchase. The Cambridge-based firm bought the majority of intellectual property and assets of encryption and key management product provider, NeoScale System for a £950k cash consideration. The company’s acquisition of Californian NeoScale provides a series of appliance-based encryption products marketed under the CryptoStor brand, nCipher said, both strengthening its position in the rapidly expanding storage encryption market, and providing a valuable addition to the company’s product range. It said that the CryptoStor products are well-proven and widely deployed in hundreds of customer locations worldwide, protecting sensitive information stored on back-up tapes and negating concerns over data privacy in the event of the loss or theft of back-up tapes. “High profile security breaches and regulatory pressure have propelled tape drive and storage encryption to the top of the priority list for data owners,” said nCipher’s CEO, Geoffrey Finlay. “The purchase of these assets by nCipher allows us to build on NeoScale’s solid reputation for high quality products and first rate support.” As part of the deal, nCipher will acquire the transaction assets, including intellectual property, software, stock of finished goods, production equipment and CRM information, financed from the company’s existing cash reserves, but will not assume any of NeoScale’s liabilities. It said that it had recruited key members of the NeoScale team and plans to continue operations from the same facility based in Milpitas, California. “We intend to engage with NeoScale’s existing customers and channel partners as we seize this opportunity to further strengthen our position in the encryption market and expand our customer base,” continued Finlay. “This acquisition reinforces nCipher’s commitment to the important and growing storage security market, particularly in North America.”

 

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