Irdeto Strengthens Content Security Solutions and Expands Security Portfolio with Acquisition of Cloakware

Tuesday, December 4th, 2007 
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Content security pioneer enhances its existing pay media security solutions and expands market reach to include enterprise, government and consumer electronics

HOOFDDORP, The Netherlands — Irdeto, the proven expert in content security for digital TV, IPTV and mobile and a subsidiary of multinational media group Naspers (JSE: NPN), announced today that it has acquired 100 percent of Cloakware, a privately held software company based in Vienna, Virginia, USA and Ottawa, Ontario, Canada.

“Through a partnership our two companies initially formed in 2003, we have personal experience with the high quality of Cloakware’s products and people,” stated Graham Kill, CEO of Irdeto. “This acquisition strengthens our existing content security offering, broadens Irdeto’s reach across the entire content lifecycle and vertically expands our offering into new markets.”

Irdeto has an unparalleled history and core competency in content security. Historically, Irdeto’s security solutions always resided on secure hardware platforms like smart card chips. As the industry matured and consumer content use evolved, the company also developed software-only solutions for IPTV, mobile TV and mobile DRM. Cloakware’s technology, which makes security inseparable from the software it protects, adds an additional layer of protection to Irdeto’s already solid security offering. The acquisition of Cloakware furthers Irdeto’s agenda to deliver end-to-end security offerings and a broad portfolio of security solutions covering multiple markets and a wide range of devices. With Cloakware in the Irdeto group of companies, this strategic addition will add enterprise, government and consumer electronics solutions to the company’s product offerings as well.

Cloakware’s software solutions protect more than one billion applications and the assets of some of the world’s largest, most recognizable and technologically advanced companies. Customers include Texas Instruments, Pioneer Electronics, NXP (founded by Philips), State Street, and Vodafone, representing enterprise, government, content distributors and manufacturers of consumer electronics, mobile devices, PCs and software. Irdeto and Cloakware’s long-standing partnership includes solutions to prevent piracy and subscription fraud in digital video and IP networks. Cloakware’s previous shareholders included significant venture capital funds and industry experts Fairhaven Capital, Globespan Capital Partners, and Intel Capital.

“Content is going digital and becoming ubiquitous – on mobile devices, on PCs, throughout the home and office – which is driving the need for sophisticated and flexible security solutions,” said Paul Ciriello, managing general partner, Fairhaven Capital, and previous chairman of the Cloakware board of directors. “Emerging business models are only as good as their security. Countless security failures have been reported in recent years, including those involving consumer electronics devices, broadcasting, the Internet, retail, banking and government. With Irdeto’s acquisition of Cloakware, the combination of the two companies creates substantially stronger solutions for the protection of digital assets.”

Cloakware’s full line of security products and services includes:

  • Cloakware Security Suite – A collection of automated tools that enable developers to protect their application code against reverse engineering, tampering attacks, and automated attacks.
  • Cloakware Robustness Solutions – Hardens Digital Rights Management (DRM) and Conditional Access (CA) systems to meet content protection standards (such as OMA DRM, DTCP-IP and WMDRM), reducing development costs and speeding time-to-market.
  • Cloakware Server Password Manager (CSPM) – Proven enterprise solution for managing privileged and application-to-application (A2A) passwords. Enables data centers to increase security, eliminate downtime, improve efficiency and comply with regulatory requirements.

“Joining the Irdeto group of companies will enable us to better serve our existing customers and continue to expand the business,” said Cloakware interim president David Canellos. “Using Irdeto’s extensive worldwide network of customers and partners, Cloakware will now have a footprint in Asia and other emerging markets.”

“As an early investor and collaborator with Cloakware, we see the company’s acquisition by Irdeto as an opportunity for it to expand its innovative technology to a worldwide customer base,” said Sean Cunningham, investment director, Intel Capital. “Irdeto will, in turn, benefit from Cloakware’s innovative security solutions that reach across a variety of market segments.”