BEDFORD, Mass., Dec. 30 /PRNewswire-FirstCall/ -- RSA Security Inc.
(Nasdaq: RSAS) today announced that it has completed its previously announced
acquisition of Cyota, Inc., a privately-held company that delivers online
security and anti-fraud solutions to thousands of financial institutions
worldwide, for total consideration of $145 million. This includes $128.8
million in cash for all of the outstanding capital stock of Cyota, $5.5
million in cash to fund a three-year retention pool and RSA Security's
assumption of all vested and unvested Cyota stock options, which represents
approximately $10.7 million in value.
As the Company had previously stated, RSA Security expects this
transaction to add approximately $22 million to $25 million in revenue in 2006
and that it will be accretive to earnings for the second half of 2006.
"The acquisition of Cyota provides RSA Security with a portfolio of
intelligent, risk-based authentication solutions," said Art Coviello,
president and CEO of RSA Security. "With our layered approach to
authentication, we have multiple hardware and software solutions that meet the
myriad needs of companies concerned with protecting online identities within
enterprise and consumer applications. Both customers and prospects have
provided overwhelmingly positive feedback to this acquisition."
About RSA Security Inc.
RSA Security Inc. is the expert in protecting online identities and
digital assets. The inventor of core security technologies for the Internet,
the company leads the way in strong authentication and encryption, bringing
trust to millions of user identities and the transactions that they perform.
RSA Security's portfolio of award-winning identity & access management
solutions helps businesses to establish who's who online -- and what they can
do.
With a strong reputation built on a 20-year history of ingenuity,
leadership and proven technologies, we serve approximately 19,000 customers
around the globe and interoperate with more than 1,000 technology and
integration partners. For more information, please visit
http://www.rsasecurity.com.
RSA and RSA Security are either registered trademarks or trademarks of RSA
Security Inc. in the United States and/or other countries. All other products
and services mentioned are trademarks of their respective companies.
This press release contains forward-looking statements regarding the
expected effect of the Cyota acquisition on RSA Security's financial
performance in 2006. These statements involve a number of risks and
uncertainties. Some of the important factors that could cause actual results
to differ materially from those indicated by the forward-looking statements
are the ability of RSA Security to successfully integrate Cyota's employees
and operations, the ability to realize anticipated synergies and cost savings
as a result of the transaction, material adverse changes in the financial
condition or operations of Cyota, general economic conditions, the timing of
the introduction or enhancement of our products and our competitors' and
strategic partners' products, changes in product pricing, including changes in
competitors' pricing policies, development and performance of our direct and
indirect distribution channels, delays in product development, competitive
pressures, changes in customer and market requirements and standards, market
acceptance of new products and technologies, technological changes in the
computer industry, and the risk factors detailed from time to time in RSA
Security's periodic reports and registration statements filed with the
Securities and Exchange Commission, including, without limitation, RSA
Security's Annual Report on Form 10-K filed on March 14, 2005 and its
Quarterly Report on Form 10-Q filed on November 7, 2005.
Public Relations: Investor Relations:
Matt Buckley Jeremiah Sisitsky
RSA Security Inc. RSA Security Inc.
(781) 515-6212 (781) 515-6065
mbuckley@rsasecurity.com jsisitsky@rsasecurity.com
SOURCE RSA Security Inc.
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Related links:
http://www.rsasecurity.com
CONTACT:
Matt Buckley, +1-781-515-6212,
mbuckley@rsasecurity.com, or Jeremiah Sisitsky, +1-781-515-6065,
jsisitsky@rsasecurity.com, both of RSA Security Inc.
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