VeriSign Acquiring Certicom After RIM Bails - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Mobile // Mobile Devices

VeriSign Acquiring Certicom After RIM Bails

All three parties will be forced to engage in some fence mending because RIM's and Certicom's products are intertwined.

Certicom's strategy of holding out for a high bid to be taken over apparently has succeeded as VeriSign announced Friday that it would take over the smaller company.

Earlier in the week, Certicom was successful in beating off a takeover bid from Research In Motion.

VeriSign will pay a price equivalent to $72 million (92 million Canadian dollars). RIM's $52 million offer was considerably lower, and Certicom succeeded in blocking the RIM offer and placing itself "in play" with the hope that another company would appear with a higher offer.

All three parties will be forced to engage in some fence mending because RIM's and Certicom's products are intertwined and Certicom's elliptic curve cryptography is a security workhorse in the high-tech industry. RIM has utilized Certicom's ECC in its BlackBerry handsets for years. In an effort to attract additional takeover offers, Certicom had established a "data room" of its confidential records so potential suitors could examine its books and bid with an understanding of Certicom's business.

"This transaction combines the strengths of both companies in a unique strategic fit," VeriSign's Jim Bidzos said in a statement. "Certicom's leadership in elliptic curve cryptography technology allows VeriSign to develop adjacent market opportunities closely aligned with our core SSL business."

Bidzos, who is serving as VeriSign's executive chairman and CEO on an interim basis, said the marketplace will benefit from a combination of VeriSign's certificate services infrastructure and from Certicom's encryption technology. Certicom's ECC has been adopted for government communications by the U.S. National Security Agency.

After Certicom broke off negotiations with RIM this week, TD Securities was hired by Certicom to oversee new takeover negotiations.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
Top 10 Data and Analytics Trends for 2021
Jessica Davis, Senior Editor, Enterprise Apps,  11/13/2020
Where Cloud Spending Might Grow in 2021 and Post-Pandemic
Joao-Pierre S. Ruth, Senior Writer,  11/19/2020
The Ever-Expanding List of C-Level Technology Positions
Cynthia Harvey, Freelance Journalist, InformationWeek,  11/10/2020
White Papers
Register for InformationWeek Newsletters
Current Issue
Why Chatbots Are So Popular Right Now
In this IT Trend Report, you will learn more about why chatbots are gaining traction within businesses, particularly while a pandemic is impacting the world.
Flash Poll