In a move designed to beef up its portfolio of adaptive authentication solutions and expand its reach in the financial services industry, RSA Security has acquired PassMark Security, Inc. A privately held company based in Menlo Park. PassMark delivers software-based authentication to users worldwide through some of the largest consumer-facing financial institutions.
RSA Security purchased PassMark for total consideration of USD 44.7 million, which consisted of USD 9 million in cash and the issuance of approximately 2 million shares of RSA Security common stock.
In addition, RSA Security is setting aside USD 2.7 million to fund employee retention plans and termination costs. The Company will also reserve approximately 80,000 shares of its common stock related to the assumption of PassMark’s stock option plan. RSA Security expects this transaction to add in the range of USD 4 million to USD 5 million in revenue over the remainder of 2006 and in the range of USD 10 million to USD 15 million in revenue in 2007.
RSA also announced the appointment of Bill Harris to RSA Security’s board of directors, effective immediately following the closing of the transaction.
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