SafeNet

SafeNet, Inc.

Type	Private
Industry	Information security
Founded	Timonium, Maryland 1983 (1983)
Headquarters	Belcamp, Maryland, United States
Products	Encryption, Semiconductor IP, Software Monetization, Software as a Service, Hardware Security Modules, Authentication, Security tokens
Number of employees	1,600 (2011)
Parent	Gemalto
Divisions	Data Protection, Software Monetization
Website	https://safenet.gemalto.com/

SafeNet, Inc. was an information security company based in Belcamp, Maryland, United States. The company is now the fifth largest vendor in the security market and third largest provider of information security solutions in the world with revenues ~$500M.^[1]

On 8 August 2014, Gemalto announced that it had signed a definitive agreement to acquire 100% of the share capital of SafeNet from Vector Capital for US$890 million on a debt free/cash free basis.^[2] It was notably one of the largest suppliers of encryption technology to the United States Government.^[3]

Now part of Gemalto and marketed under the SafeNet product brand, offerings include enterprise authentication, data encryption, and key management. SafeNet's software monetization products are now offered under Gemalto's Sentinel brand.

History

• 1983: SafeNet, Inc was founded in 1983 as Industrial Resource Engineering by two NSA engineers and one entrepreneur named Anthony A Caputo.
• 1987: Information Resource Engineering renamed to IRE
• 1989: IRE went public in an IPO. IRE's IPO raised $4 million
• 1989: IRE listed in Nasdaq. IRE rapidly becomes the leader in banking communications security with seven of the top 10 U.S. banks as customers and encryption devices used by Swift (global interbank transfer system). IRE's Zurich based subsidiary provided security for UBS and Swiss Canton interbank network.
• 1994: IRE acquired Connective Strategies, Inc. Connective Strategies was co-founded by Charles D. Brown and Gary L. McGreal. Gary McGreal was formerly a Director at University of Southern California's computer science think tank, Information Sciences Institute. Charles Brown participated in early experiments at Strategic Air Command using TCP-IP based networks for command and control applications and later worked for USC-ISI at DARPA Headquarters.
• 1995: IRE released the first commercial VPN system, called SafeNet, specified by Gary L. McGreal, based on designs originally developed at NSA. Gary McGreal became VP of Marketing after the merger with IRE. Charles Brown served as VP of Sales and sold the VPN product into MCI and cisco systems. Charles Brown had worked closely with MCI VP, Vint Cerf while at SAC and also at MCI. Vint Cerf is best known as the co-designer of TCP-IP, the protocol suite used in the Internet. Other early customers included NSA, and FBI.
• 1996: MCI Communications launched the first commercial VPN service using SafeNet technology
• 2000: IRE renamed to SafeNet, Inc. after the VPN product line
• 2002: SafeNet acquired a Dutch company Securealink. With the collapse of the tech "bubble" SafeNet, as a public company with a strong sales channel, was able to acquire a series of promising security companies at deep discounts.
• February 2003: SafeNet acquired Cylink and Raqia Networks
• October 2003: SafeNet acquired the OEM business of SSH Communications Security^[4]
• March 2004: SafeNet acquired Rainbow Technologies
• December 2004: SafeNet acquired Datakey, Inc
• April 2005: SafeNet acquired DMDSecure B.V.
• June 2005: SafeNet acquired MediaSentry
• December 2005: SafeNet acquired Eracom Technologies AG
• 2006: SafeNet was involved in the options backdating controversy. As a result, both the Chief Executive Officer and the Chief Financial Officer resigned and in 2008 the company's former CFO was sentenced to six months in prison for manipulating employee stock options.^[5][6][7]
• April 2007: a Californian equity company Vector Capital bought the firm for $634 million, making it private^[8]
• April 2008: SafeNet acquired Ingrian Networks, Inc.
• May 2008: SafeNet acquired Beep Science AS
• March 2009: SafeNet parent company, Vector Capital acquired Aladdin Knowledge Systems^[9]
• April 2009: SafeNet sold MediaSentry to ArtistDirect
• December 2009: SafeNet acquired Assured Decisions, LLC^[10]
• December 2012: SafeNet sold its Government Solutions business unit to Raytheon
• August 2014: SafeNet announced it is to be acquired by Gemalto by the 4Q 2014^[11]

Current and former subsidiaries

The former Rainbow Technologies subsidiary SafeNet Government Solutions, LLC formerly SafeNet Mykotronx is still based in Torrance, California with offices in Irvine, California and Columbia, Maryland.^[12] The company was founded in 1979 as Myko Enterprises. It changed its name to Mykotronx, Inc in 1987 and merged with SafeNet as part of the SafeNet merger with Rainbow in 2004.^[13] SafeNet Government Solutions, LLC has been operationally merged into SafeNet and the lines between the two organizations have been intentionally blurred due to financial reasons. SafeNet Government Solutions is no longer considered a subsidiary. SafeNet Government Solutions, LLC provides INFOSEC and COMSEC technology for the US government. The firm has an indefinite-delivery, indefinite-quantity contract for its KIV-7 line of commercial off-the-shelf cryptographic devices that provide protection for digital and voice communications through TOP SECRET, used by agencies such as the NSA and the NRO.^[14] Other products include the KOV-14 Fortezza Plus PC card which was developed as part of the NSA's NSSI program and is used on Secure Terminal Equipment.^[15] They previously developed the clipper chip.^[16][17]

In 2009, Vector Capital acquired Aladdin Knowledge Systems, and placed it under SafeNet with the annotation of 'under common management'. In 2010, the two companies were officially merged.

References

External links

• Official website