UK encryption company nCipher is to rescue most of bankrupt US key management company, NeoScale Systems, as a going concern.
The sum is a firesale $1.95 million, which reflects the fact that the US company has ceased operations and is desperate to seal any deal going, but it includes NeoScale’s intellectual property assets, software, remaining finished encryption appliances, and CRM database.
Some of the California-based company’s employees will also start working for nCipher from the same base. nCipher is not taking on any of NeoScale’s debt liabilities.
NeoScale sold a family of tape cryptographic appliances under the CryptoStor brand, which nCipher will now promote under its own name. It is not clear how much development will be put into these products, but nCipher does get its hand on a tape encryption system for the first time.
The company has also bought the KeyVault encryption management technology and associated products, which fit more directly into its current line-up.
“In addition to enhancing nCipher's product portfolio, this acquisition will strengthen the Company's customer base and provide expansion opportunities in the North American and international markets,” said an official nCipher release.
“We intend to engage with NeoScale's existing customers and channel partners as we seize this opportunity to further strengthen our position in the encryption market and expand our customer base. This acquisition reinforces nCipher's commitment to the important and growing storage security market, particularly in North America," said new CEO Geoffrey Finlay, who took over only days ago from founding CEO, Alex van Someren.
The buy is a small coup for the UK outfit given that the NeoScale’s administrators are believed to have received bids from a variety of companies including Dell, Oracle, and Palo Alto, and Pretty Good Privacy.