ActivIdentity, a provider in strong authentication and credential management, announced it had entered into an agreement to acquire CoreStreet, a supplier of distributed identity credential validation solutions. By combining the passion, creativity and technology of two leading-edge companies, it believes it will continue to drive innovations that allow organizations to confidently establish a person's identity when interacting digitally.
The acquisition of CoreStreet supports ActivIdentity's global vision of making every digital interaction trustworthy by adding distributed identity credential validation solutions and physical access control products to the company's broad portfolio of strong authentication and credential management offerings. CoreStreet's PKI certificate validation technology is deployed by public and private organizations around the world to validate the credentials of individuals as they interact with their secure IT applications, including digitally signed email and secure forms. Additionally, The CoreStreet PIVMAN solution allows authorized personnel the ability to control access to any site with confidence by quickly authenticating and validating the roles and identities of individuals wishing to enter an area.
Why is ActivIdentity acquiring CoreStreet?
With the addition of CoreStreet's Public Key Infrastructure (PKI) certification technology, distributed identity credential validation system, and physical access control products, ActivIdentity believes the acquisition will strengthen its strong authentication and credential management product portfolio to confidently establish a person's identity when interacting digitally. As a result, ActivIdentity believes to meet a wider set of customer needs, extend its market reach and customer base, as well as increase its opportunity to grow into new markets.
How much is ActivIdentity paying for this transaction? What are the terms of the acquisition? Is this a stock or cash transaction?
The consideration for the acquisition of approximately US$20 million will consist primarily of cash but will also include stock and warrants.
When is this transaction expected to close?
The acquisition is subject to customary closing conditions and is expected to be completed in December 2009.
Will this transaction impact guidance for the remainder of ActivIdentity's fiscal year?
ActivIdentity expects this acquisition to add on a full year basis approximately 10 percent to our revenue base and to be accretive to adjusted EBITDA.
What will the management structure look like?
Grant Evans will remain the chairman and CEO of ActivIdentity. CoreStreet's senior management will move into a variety of key management roles at ActivIdentity.
What happens to the CoreStreet brand?
Over time, CoreStreet products will transition to the ActivIdentity brand.
How do the cultures of the two companies compare?
Both companies share a passion for innovation and a commitment to developing and delivering customer-driven software, ensuring a strong cultural fit.