San Diego-based software company Verimatrix struck a deal to sell to a French security company for $143 million on Dec. 5.
Inside Secure S.A. entered and exclusive agreement to acquire Verimatrix, which specializes in content security for digital television services. Inside Secure develops security solutions for mobile and connected devices.
"This transaction allows a great combination of technologies and expertise, bringing two well-respected market players together,” Verimatrix CEO Tom Munro said in a news release. “It's exciting to create a company with such a clear focus, a global presence, and a depth of expertise in the applications of security and analytics across critical market segments."
The deal will expend Verimatrix’s data analytics capabilities into Inside Secure’s markets. The combined company is expected to bring in $119 million in adjusted revenue and $21.5 million in earnings.
Inside Secure also expects $10 million in synergies from the combination. Part of the savings will stem from economies of scale between development teams, suppliers and device provisioning costs, or the cost of providing devices with a security certificate. Another portion of the planned savings will stem from a reduction of general and administrative costs, or “rationalization” of the combined company.
Verimatrix has a total of 300 employees. That includes about 150 in the San Diego area, as of 2017.
“We are looking forward to combining both businesses to offer our clients the best value proposition in security, starting with entertainment and moving towards Internet of Things and connected cars, and to continue to create value for our shareholders,” Inside Secure CEO Amedeo D'Angelo said in a news release.
The companies plan to close the $143 million, all-cash deal in the first quarter of 2019.