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SafeNet, Inc. was an information security company based in Belcamp, Maryland, United States, which was acquired in August 2014 by the French security company Gemalto. SafeNet's products are marketed under the SafeNet product brand, and include solutions for enterprise authentication, data encryption, and key management. SafeNet's software monetization products are sold under Gemalto's Sentinel brand.

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SafeNet was notably one of the largest suppliers of encryption technology to the United States Government.^[1]

On 8 August 2014, Gemalto announced that it had signed a definitive agreement to acquire 100% of the share capital of SafeNet from Vector Capital for US$890 million on a debt free/cash free basis.^[2] A subsequent acquisition of Gemalto by French rival Thales Group was completed on 2 April 2019.^[3]

History[edit]

• 1983: SafeNet, Inc was founded in 1983 as Industrial Resource Engineering by two former NSA engineers, Alan Hastings and technical visionary Douglas Kozlay.
• 1987: Anthony A. Caputo becomes CEO and investor.
• 1989: IRE went public in an IPO initially trading on the OTC pink sheets, and the name changed to Information Resource Engineering. IRE's IPO raised $4 million.
• 1989: IRE rapidly becomes the leader in banking communications security with seven of the top ten U.S. banks as customers and encryption devices used by SWIFT (global interbank transfer system). An end-to-end encryption system was developed that secured data over an X.25 public network, providing the world's first 'virtual private network.' Early adopters included the Bank of Montreal and Citibank.
• 1994: IRE acquired Connective Strategies, Inc., a manufacturer of voice and data ISDN products. CSI's CEO, Charles Brown becomes Senior Vice President of Sales and Business Development.
• October 1995: IRE acquired Swiss crypto manufacturer Gretag Data Systems for $4 million.
• 1996: MCI Communications launched the first commercial VPN service using SafeNet VPN technology. SafeNet was adopted by thirteen of the top fifteen U.S. banks within two years.
• 1997: IRE stock plunges 50% in one day on announcement of the restructuring of the MCI contract.
• July 1998: Major shareholder fails in hostile takeover attempt of IRE.^[4]
• 2000: IRE renamed to SafeNet, Inc. after the VPN product line.
• 2001: Company co-founder Doug Kozlay leaves SafeNet to form Biometric Associates, a technology company focused on biometric-based authentication and identity solutions.
• 2002: SafeNet acquired a Dutch company Securealink. With the collapse of the tech 'bubble' SafeNet, as a public company with a strong sales channel^{[citation needed]}, was able to acquire a series of promising security companies at deep discounts.
• February 2003: SafeNet acquired Cylink and Raqia Networks^[5]
• October 2003: SafeNet acquired the OEM business of SSH Communications Security^[6]
• March 2004: SafeNet acquired Rainbow Technologies
• December 2004: SafeNet acquired Datakey, Inc
• April 2005: SafeNet acquired DMDSecure B.V.^[7]
• June 2005: SafeNet acquired MediaSentry
• December 2005: SafeNet acquired Eracom Technologies AG^[8]
• 2006: SafeNet was involved in the options backdating controversy. As a result, both the chief executive officer and the chief financial officer resigned, and in 2008 the company's former CFO was sentenced to six months in prison for manipulating employee stock options.^[9][10][11]
• April 2007: a Californian equity company Vector Capital bought the firm for $634 million, making it private^[12]
• April 2008: SafeNet acquired Ingrian Networks, Inc.
• May 2008: SafeNet acquired Beep Science AS
• March 2009: SafeNet parent company, Vector Capital acquired Aladdin Knowledge Systems^[13]
• April 2009: SafeNet sold MediaSentry to ArtistDirect
• December 2009: SafeNet acquired Assured Decisions, LLC^[14]
• December 2012: SafeNet sold its Government Solutions business unit to Raytheon^[15]
• August 2014: SafeNet announced it is to be acquired by Gemalto by the 4Q 2014^[16]
• February 2015: SafeNet Assured Technologies is launched as a fully owned subsidiary of Gemalto to provide high assurance data security products and technologies to U.S. government.^[17]
• April 2019: Thales Group closes the acquisition of Gemalto^[18]

Current and former subsidiaries[edit]

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The former Rainbow Technologies subsidiary SafeNet Government Solutions, formerly SafeNet Mykotronx, is still based in Torrance, California with offices in Irvine, California and Columbia, Maryland.^[19] The company was founded in 1979 as Myko Enterprises. It changed its name to Mykotronx, Inc in 1987 and merged with SafeNet as part of the SafeNet merger with Rainbow in 2004.^[20] SafeNet Government Solutions, LLC has been operationally merged into SafeNet and the lines between the two organizations have been intentionally blurred due to financial reasons. SafeNet Government Solutions is no longer considered a subsidiary. SafeNet Government Solutions provides information security and communications security technology for the US government. The firm has an indefinite-delivery, indefinite-quantity contract for its KIV-7 line of commercial off-the-shelfcryptographic devices that provide protection for digital and voice communications through TOP SECRET, used by agencies such as the National Security Agency (NSA) and the National Reconnaissance Office.^[21] Other products include the KOV-14 Fortezza Plus PC card which was developed as part of the NSA's NSSI program and is used on Secure Terminal Equipment.^[22] They previously developed the Clipper chip.^[23][24]

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In 2009, Vector Capital acquired Aladdin Knowledge Systems, and placed it under SafeNet with the annotation of 'under common management'. In 2010, the two companies were officially merged.

References[edit]

1. ^Roseanne Gerin (2005-04-10). 'SafeNet wins DOD network security deal'. Washington Technology Magazine. Retrieved 2008-12-08.
2. ^'Gemalto to acquire SafeNet, the worldwide leader in data and software protection'. 2014-08-08. Retrieved 2014-08-13.
3. ^'Thales Completes Acquisition of Gemalto to Become a Global Leader in Digital Identity and Security, Extending U.S. Footprint'.
4. ^'Coup fails'.
5. ^EETimes (2003-02-28). 'EETimes - SafeNet acquires assets of Raqia Networks -'. EETimes. Retrieved 2020-09-17.
6. ^'SSH sells its OEM business to SafeNet'. 2003-10-14.
7. ^EETimes (2005-03-25). 'EETimes - SafeNet to acquire software provider -'. EETimes. Retrieved 2020-09-17.
8. ^GmbH, finanzen net. 'SafeNet Completes Acquisition of Eracom Technologies AG | Markets Insider'. markets.businessinsider.com. Retrieved 2020-09-17.
9. ^Jones/Associated, Dow (October 19, 2006). 'SafeNet Is Roiled by Options Inquiry'. The New York Times. Retrieved 2013-11-21.
10. ^Graybow, Martha (28 January 2008). 'Ex-Safenet CFO gets prison term in options case'. reuters.com.
11. ^'Cost of Backdating: Six Months, $1 Million'. 2008-01-30. Retrieved 2013-11-21.
12. ^'SafeNet sold, goes private'. 2007-04-13.
13. ^'Aladdin Knowledge Systems Completes Merger with Vector Capital Affiliate'(PDF). 2009-03-24.
14. ^'SafeNet to Acquire Assured Decisions, LLC'. 2009-12-23.
15. ^'Raytheon Acquires SafeNet Inc'. finance.yahoo.com. Retrieved 2020-09-17.
16. ^'Gemalto Buys SafeNet for $890 Million'. WSJ.com. 2014-08-08. Retrieved 2015-01-09.
17. ^'SafeNet Assured Technologies, LLC Formally Launches U.S. Based Business'. 2015-02-09.
18. ^'Thales buys Gemalto'. 2019-04-02.
19. ^'SafeNet Offices - North America'.
20. ^'About SafeNet Mykotronx'.
21. ^'KIV-7 Family'. Federation of American Scientists.
22. ^'Mykotronx wins defense card work'.
23. ^'INFORMATION ABOUT THE CLIPPER WIRETAP CHIP'.
24. ^Neumann, Peter G. 'THE CLIPPER CHIP: A TECHNICAL SUMMARY'. The Risks Digest.

External links[edit]

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