Inside Secure has completed its acquisition of rival security solutions provider Verimatrix, paying US$138.1 million in cash at closing for 100% ownership of the business.
The French company said that the deal accelerates its strategic roadmap, offering an improved value proposition for its customers with an expanded reach to secure connected services across a range of markets.
The combined company will work within the entertainment security space and offer software and hardware solutions for the mobile, internet of things (IoT) and connected cars markets. It will also pursue new growth opportunities in big data and business analytics applications.
Inside Secure’s CEO and president, Amedeo D’Angelo, will lead the combined company, while Steve Oetegenn becomes chief operating officer, having previously worked as Verimatrix’s president and chief sales and marketing officer.
Verimatrix CEO Tom Munro reportedly sent a note to contacts earlier this week saying that he would leave the company after the deal closed and had “opted out of the future management team.”
Commenting on the acquisition, D’Angelo said: “This is an exciting time for the new combined company, which is ideally positioned to be a software-based security and analytics powerhouse.
“By joining forces, we are able to offer our customers the best value proposition in security, starting with entertainment and mobile industries and moving towards markets, such as IoT and connected cars, while deploying Verimatrix data analytics capabilities across our end markets, and to continue to create value for our shareholders.”
Inside Secure agreed to buy Verimatrix in December and anticipated the deal would close in the first quarter of 2019. The company anticipates US$10 million cost synergies per year as a merged entity and expects to reach combined revenues of US$150 million and an EBITDA margin of 25% in 2021.
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17th March 2019