Market Wire – Commtouch to Acquire the Antivirus Division of Authentium
Commtouch® (NASDAQ: CTCH) today announced that it has signed a decisive Asset Purchase Agreement to acquire the assets, products, licenses, and operations of the Command antivirus allotment of Authentium, Inc., a Florida-based company.
Command antivirus — which furthermore includes technology to protect against spyware, Trojan downloaders, and other threats — is strongly synergetic with the rest of Commtouch’s product portfolio. With the joining of antivirus technology as a new, third product line, Commtouch testament be offering a comprehensive set of solutions for inbound and outbound messaging and Web guard to its customers, which are networking and security vendors and useful office providers.
The Command antivirus division currently provides its technology to a watchful number of leading service providers and vendors, including Google, McAfee, and Microsoft. Certified through Checkmark, West Coast Labs, and a winner of multiple Virus Bulletin awards, Authentium’s Command antivirus technology boasts a puny footprint and a highly efficient event-processing system.
Commtouch is expected to pay $4.6 a thousand thousand in cash and an additional “earnout” contingent upon the achievement of actual revenue milestones through December 31, 2011, which may bring the aggregate amount to approximately $8 million.
The acquisition is expected to have existence accretive starting the first quarter post-closing, and should contribute arbitrarily to Commtouch’s non-GAAP top and bottom line in 2011. The acquisition devise also allow Commtouch to accelerate its rate of growth in revenues and profits.
Broader Offering and Foundations according to Growth
“In the past 18 months, we have expanded our proceeds offerings from a single product line — that of messaging security — to three complementary consequence lines, including the one we are purchasing now. In addition, we get broadened our target markets from a single market — OEM vendors — to embrace service providers. We believe that this unique combination of expanded offerings and mark markets will set the stage for healthy growth for the coming years,” said Gideon Mantel, Commtouch’s chairman of the board and prime executive officer.
Mr. Mantel added, “Commtouch has considered a number of acquisition opportunities for the time of the past year as part of our long-term growth generalship, and after a thorough examination, we decided that Authentium’s Command apportionment is the best fit for our business, both strategically and operationally. We think to be true that many of our current customers will be eager to make firm their messaging and Web security needs around a single reliable seller — Commtouch — and enjoy the operational simplicity and reduced total cost of ownership that this entails. We are excited in various places the opportunities ahead.”
The transaction will be financed from Commtouch’s acknowledge financial resources. Commtouch ended the second quarter of 2010 with near $16 million in cash and zero debt, and management therefore believes that following punishment for the deal, the Company will maintain more than sufficient operating capital to fund its existing operations as well as to persist in further opportunities and complete its share buy-back program.
Strong Synergy: People & Products
“We are thrilled to join the Commtouch team. We look great synergies between Commtouch and Command, and both companies have a resembling focus on both technological excellence and dedicated customer service,” said Helmuth Freericks, Authentium’s supreme science officer. “With the acquisition, we will gain additional resources in conditions of capital, marketing, and a renewed focus on enhancing the technology; altogether of which directly benefit our customers and further enable our imprisonment to world-class protection. We look forward to continuing to do our customers moving forward as part of the Commtouch family.”
Mr. Freericks, who likewise co-founded Command, will join Commtouch’s management team as General Manager, Antivirus Solutions. The rest of the Command employees, including its venom lab analysts, will also be joining Commtouch, under Mr. Freericks’ guidance.
Combining the skills and resources of both companies, Commtouch plans to leverage the Command technology and continue developing and enhancing it.
Closing of the acquisition is subject to consuetudinary conditions and governmental approvals, and is to take place by September 30, 2010.
The Company devise be hosting a conference call to discuss second quarter results and the deal at 10 a.m. Eastern time on Wednesday, July 28. To participate, please call one of the following teleconferencing numbers by dialing in at least 5 minutes before the conference cry out commences:
US Dial-in Number: 1 888 407 2553
Israel Dial-in Number: 03 918 0644
International Dial-in Number: 972 3 918 0644
The term will be simultaneously webcast and available afterwards as a replay from the investor relations part of Commtouch’s website.
About Commtouch Commtouch® (NASDAQ: CTCH) provides proven messaging and Web carelessness technology to more than 130 security companies and service providers as far as concerns integration into their solutions. Commtouch’s GlobalView and patented Recurrent Pattern Detection (RPD) technologies are founded steady a unique cloud-based approach, and work together in a wide-reaching feedback loop to protect effectively in all languages and formats. Commtouch technology automatically analyzes billions of Internet transactions in positive-time in its global data centers to identify new threats similar to they are initiated, protecting email infrastructures and enabling safe, compliant browsing. The body’s expertise in building efficient, massive-scale security services has resulted in mitigating Internet threats since thousands of organizations and hundreds of millions of users in 190 countries. Commtouch was founded in 1991, is headquartered in Netanya, Israel, and has a corroborative in Sunnyvale, Calif.
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