BALTIMORE--(BUSINESS WIRE)--SafeNet, Inc., a global leader in information security, today announced that it will establish common management with Aladdin Knowledge Systems Ltd. as a result of Aladdin’s acquisition by Vector Capital, SafeNet’s private equity owner, creating a global leader for Software Rights Management (SRM) and Authentication solutions. Aladdin is expected to be fully integrated into SafeNet in the future.

Bringing together the expertise of these two market leaders will result in accelerated product development and bring to market integrated solutions with the best in class technical capabilities required to solve customers’ increasing security challenges.

“The completion of this transaction will bring great opportunities to our customers, all of our employees and the information security industry,” said Chris Fedde, president and COO, SafeNet. “In these challenging economic times, customers want to engage with a financially strong and nimble vendor. With nearly $500 million of combined revenues, SafeNet and Aladdin represent a strong force, offering critical solutions in rights management and enterprise data protection for the world’s most important commercial and government customers. We will have a truly global information security franchise with more than 25,000 customers across 100 countries around the world.”

Aladdin’s industry leading Authentication and Content Filtering products will strengthen SafeNet’s Enterprise Data Protection solutions for commercial and government customers. The Software Rights Management solutions will enhance SafeNet’s software anti-piracy products as well as allow SafeNet to broaden its entitlement management solutions for emerging software industry needs. Aladdin product lines will be led by Prakash Panjwani, SafeNet’s Senior Vice President and General Manager. Aladdin’s customer service and support functions will be combined with SafeNet’s global service and support structures, under the direction of Phil Saunders, SafeNet’s SVP of Worldwide Sales and Customer Services.

“We are excited to share our success with that of Aladdin and be able to tap each company’s deep talent for the benefit of our customers. Software vendors are looking for more efficient ways to license and fulfill their software to customers under these tough economic conditions, while reducing piracy and enhancing revenue sources. The combination of SafeNet and Aladdin allows us to dedicate resources to invest in Software Rights Management and allow customers more options than they have available today for anti-piracy, licensing and managing entitlements,” said Mr. Panjwani. “Aladdin has been one of the most innovative companies in Authentication products during the last several years, having created the broadest portfolio of such products in the market today, ranging from One-Time-Password (OTP) to Public Key tokens. Together, we plan to expand the reach of these products to new markets, while enhancing usability and management of these tokens for Enterprises that are fully aligned with the need for strong authentication and identity management solutions than ever before.”

Maryland’s Governor Martin O’Malley commented on the transaction and the extensive relationship between Maryland and Israeli companies, “SafeNet is indicative of how a company based in the State of Maryland can provide worldwide industry leadership in critical areas. As it goes to market in conjunction with Aladdin, we fully expect to create the opportunity for more jobs in the State. I am proud to highlight the 17-year-strong partnership with the Maryland/Israel Development Center, which works every day to bring Maryland and Israeli companies together to do more business, thereby increasing economic activity and creating jobs.”

About SafeNet, Inc.

SafeNet is a global leader in information security. Founded 25 years ago, the company provides complete security utilizing its encryption technologies to protect communications, intellectual property and digital identities, and offers a full spectrum of products including hardware, software, and chips. UBS, Nokia, Fujitsu, Hitachi, Bank of America, Adobe, Cisco Systems, Microsoft, Samsung, Texas Instruments, the U.S. Departments of Defense and Homeland Security, the U.S. Internal Revenue Service and scores of other customers entrust their security needs to SafeNet. In 2007, SafeNet was acquired by Vector Capital, a $2 billion private equity firm specializing in the technology sector. For more information, visit www.safenet-inc.com.

About Vector Capital

Vector Capital is a leading private equity firm specializing in spinouts, buyouts and recapitalizations of established technology businesses. Vector identifies and pursues these complex investments in both the private and public markets. Vector actively partners with management teams to devise and execute new financial and business strategies that materially improve the competitive standing of these businesses and enhance their value for employees, customers and shareholders. Among Vector's notable investments are LANDesk Software, Savi Technology, SafeNet, Corel Corporation (Nasdaq:CREL), Precise Software Solutions, Printronix, Register.com, Tripos, WinZip and Watchguard Technologies. For more information, visit www.vectorcapital.com.

About Aladdin

Aladdin Knowledge Systems is an information security leader with offices in 15 countries, a worldwide network of channel partners, and numerous awards for innovation. Aladdin eToken is the world's #1 USB-based authentication solution, offering identity and access management tools that protect sensitive data. Aladdin SafeWord two-factor authentication technology protects companies' important information assets and applications. Aladdin HASP SRM boosts growth for software developers and publishers through strong anti-piracy protection, IP protection, and secure licensing and product activation. Aladdin eSafe delivers real-time intelligent Web gateway security that helps protect data and networks, improves productivity, and enables compliance. Visit www.Aladdin.com.

Editor's Note: SafeNet is a registered trademark of SafeNet, Inc. All other trademarks are the property of their respective owners.

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