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Rambus to acquire Silicon IP and Secure business from Verimatrix
Posted on Thursday, 12 September 2019 14:11
Silicon Internet Protocol (IP) and chip maker Rambus has announced an asset purchase agreement to pick up the Silicon IP and Secure Protocols business of Verimatrix for USD 65.00 million.
The deal follows an announcement by the companies last week that the two were in exclusive talks and a formal agreement will be made upon completion of certain pre-conditions.
Verimatrix’s integrated portfolio of products will combine the secure silicon IP and provisioning services from both companies to create a comprehensive security offering in the industry.
Rambus did not disclose how it will fund the acquisition, although it had USD 114.19 million of cash and cash equivalents on its balance sheet at 30th June 2019.
Luc Seraphin, chief executive of the buyer, said: “Their combination of products and expertise is highly complementary to our existing business and will expand our global reach for our worldwide security customer base.”
Amedeo D’Angelo, his counterpart at Verimatrix, added: “Integrating the Verimatrix embedded security team into Rambus, a recognised leader in hardware-based security, will deliver the most comprehensive portfolio of security solutions in the industry.”
Closing is expected before the end of the year and is subject to the usual raft of conditions.
Verimatrix was acquired by Inside Secure for USD 155.90 million in February 2019, combining both companies which retained the target’s name.
The business secures revenue for multi-network video services around the world and has 942 operators and 208.00 million devices across 113 countries.
Rambus creates hardware, software and services for technology advancements from data centres to mobile edge.
During the six months to 30th June 2019, the group generated revenue of USD 106.68 million, up 3.7 per cent from USD 102.88 million in the corresponding period of 2018.
Net loss totalled USD 63.56 million in H1 2019, compared to a loss of USD 51.05 million in H1 2018.
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