ActivIdentity Corporation (NASDAQ: ACTI), a global leader in strong authentication and credential management, today announced that it had entered into an agreement to acquire CoreStreet Ltd., a leader in distributed identity credential validation solutions.
The consideration for the acquisition of approximately $20 million will consist primarily of cash, but will also include stock and warrants. The acquisition is subject to customary closing conditions and is expected to be completed in December 2009. ActivIdentity expects this acquisition to add on a full year basis, approximately 10%, to our revenue base and to be accretive to adjusted EBITDA.
With the addition of CoreStreet's Public Key Infrastructure (PKI) certification technology, distributed identity credential validation system, and physical access control products, ActivIdentity believes the acquisition will strengthen its strong authentication and credential management product portfolio to confidently establish a person's identity when interacting digitally.
"Customer demand for scalable identity credential and authentication management solutions is growing exponentially as organizations of all sizes strive to ensure that only authorized personnel are accessing their facilities, networks, data, or applications," said Grant Evans, chairman and chief executive officer of ActivIdentity. "CoreStreet's solutions, talent and customers complement ActivIdentity's business and we believe they will extend our ability to deliver a comprehensive set of capabilities that enable organizations to protect against cyber-security threats and identity fraud. This deal represents the first piece in our growth strategy going forward."
The acquisition of CoreStreet is intended to support ActivIdentity's global vision of making every digital interaction trustworthy by adding distributed identity credential validation solutions and physical access control products to the company's broad portfolio of strong authentication and credential management offerings. CoreStreet's PKI certificate validation technology is deployed by public and private organizations around the world to validate the credentials of individuals as they interact ract with their secure IT applications, including digitally signed email and secure forms. Additionally, CoreStreet's PIVMAN system allows authorized personnel the ability to control access to any site with confidence by quickly authenticating and validating the roles and identities of individuals wishing to enter an area.
"CoreStreet is pleased that our proven technology will add strategic value and complement ActivIdentity's portfolio of world-class strong authentication and credential management products," said Chris Broderick, chief executive officer of CoreStreet. "We believe our combined teams will create exciting growth opportunities for the company, our customers and our employees. We look forward to contribute to our combined future growth as part of the ActivIdentity team."
ActivIdentity's acquisition of CoreStreet builds upon an existing relationship between the companies. CoreStreet and ActivIdentity already partner on credential management solutions that enable government agencies and enterprises to defend against security threats and identity fraud.