Prior investors in the company, Accel Partners, Goldman Sachs, Onset Ventures, Raza Ventures, Skandinaviska Enskilda Banken (SEB), and Wachovia Strategic Ventures also participated in the round.

Arcot will use the funding to accelerate deployment of its identity management and authentication software solutions worldwide, focusing on financial services, pharmaceutical, and consumer portal requirements. Arcot's solutions suite includes payment authentication, user authentication, and digital signature verification platforms used by over 15,000 credit/debit card issuers, merchants and enterprises in the U.S., Canada, the European Community, and throughout the Asia-Pacific region.

In connection with the financing, Chris McKay of Granite Ventures, the General Partner of Adobe Ventures, will join Arcot's Board of Directors.

"There is a great opportunity to ease marketplace pain associated with implementing document processes that require strong authentication. The portable document format (PDF) pioneered by Adobe Systems Incorporated (which supports Adobe Ventures) is increasingly being adopted in these high-value business processes to ensure integrity in the information exchanged. Arcot's solutions allow customers to easily manage the identity of those involved in the process. We look forward to greater collaboration between Adobe and Arcot to further enable these types of solutions," said John Landwehr, Director of Security Solutions and Strategy, Intelligent Documents business unit at Adobe.

"We welcome Adobe Ventures' vote of confidence during this exciting phase of the company's growth. Their investment in Arcot, along with INVESCO's and that of our existing investors, will enable us to more rapidly expand deployments of our authentication software solutions worldwide," said Ram Varadarajan, President and CEO of Arcot. "While we are generating positive cash flow from operations, this round of financing will enable us to accelerate our growth multi-fold."

Mr. Varadarajan continued, "We are already a major player in the online identity management and authentication space and Arcot is ready to help protect the identities and transactions of millions of more consumers. Our unique two-factor camouflage encryption solution is the most sustainable way to secure an organization's resources and thwart many types of security threats, such as identity theft and phishing attacks. And as important, Arcot provides robust enterprise-strength authentication software that is quickly deployed, compatible with existing legacy systems, and flexible enough to work well within evolving PKI architectures."