Inside Secure (NYSE Euronext: INSD), a leader in embedded security solutions for mobile and connected devices, today announces that it has acquired Metaforic, a leader in the development of software obfuscation technologies and encryption-related security software for a variety of industries, including the mobile payment and mobile banking markets.
Such Metaforic's technologies are critical to securing Host Card Emulation (HCE)-based mobile payments, mobile wallets and mobile banking applications. A venture capital-backed company, Metaforic has headquarters in Scotland and operations in Silicon Valley (California).
The Supervisory Board of INSIDE Secure has unanimously approved this transaction.
By leveraging INSIDE Secure's strong security capabilities, the combined comprehensive solution will lead to additional sales, and reinforce INSIDE Secure's position as a key player in the fast-growing mobile security solutions market, as Metaforic:
- Complements existing INSIDE Secure enterprise secure access (Virtual-Private-Network or VPN products) and content protection (Digital Right Management or DRM products) solutions by adding mobile payments and uniquely positions INSIDE Secure as the only company able to provide security solutions for enterprise secure access, digital entertainment and financial services markets, the three key market drivers for mobile security;
- Extends INSIDE Secure's lead in providing the most comprehensive system solution offering (hardware, software and IP) in the security industry from secure software solutions to alternative secure element-based hardware and IP. Such solutions are designed to target smartphones and other mobile device markets and to overcome upcoming architectural and certification discontinuities in mobile security;
- Brings an extensive, high quality security intellectual property and technology portfolio, in line with INSIDE Secure's long-term strategy to expand its own IP licensing revenue;
- Complements INSIDE Secure's know-how with a talented team of highly qualified employees located in the UK and the US;
- Expands INSIDE Secure's customer base in the mobile and payment industries.
At closing, INSIDE Secure paid USD 11.6 million in cash in consideration for the shares, and could pay in 2015 an additional amount of up to USD 4.5 million subject to completion of certain 2014 business milestones.
Commenting on this announcement, Remy de Tonnac, Chief Executive Officer of INSIDE Secure, said: "The Metaforic acquisition is superbly aligned with INSIDE Secure's strategy. Metaforic brings critical technologies to address HCE-based, cloud-based mobile payment solutions which will become mainstream following support announced by major payment brands. It will uniquely position INSIDE Secure as the only company able to provide security solutions for enterprise secure access, digital entertainment and financial services markets, the three key market drivers for mobile security."
Andrew McLennan, Chief Executive Officer of Metaforic, said: "We are delighted to join INSIDE Secure and bring our key software obfuscation and encryption-related security software, in order to accelerate our jointly held vision to secure all aspects of mobile life. The tight integration of Metaforic's technology within INSIDE Secure's offering will bring to the market the world's most comprehensive, mobile security system solution."
 Obfuscation technology in particular is used to enhance applications security by intentionally making software more difficult to understand and to reverse-engineer