Inside Secure, a security solutions company for mobile and connected devices, is set to buy Verimatrix in a deal valued at $143 million.
Verimatrix, a privately-held company headquartered in San Diego, California, USA, has 300 plus employees in 20 countries, with most significant operations in California and Germany.
Verimatrix, a software security provider for video services, generated mid-single digit growth in revenue to $78.7 million and $14.5 million EBITDA in the twelve-month period ended September 30, 2018.
Amedeo D’Angelo, chairman and CEO of Inside Secure, said: “Verimatrix is the perfect fit to strengthen scale and reach of our proposition in end markets that are fast shifting towards software and cloud-based security solutions while video content consumption is becoming multi-device and multi-format.”
The combination supports content providers and service operators to manage complex video security challenges. Content owners and service operators are likely to lose $37 billion revenue due to piracy in 2018.
The combined entities would have generated $119 million in revenue and $21.5 million in EBITDA in 2017 on an IFRS pro forma basis.
Paris-based Inside Secure said it anticipates $10 million cost synergies per year on a run rate basis, once fully implemented, representing 10 percent of combined operating expenses base.
Inside Secure aims to achieve revenues of $150 million and 25 percent EBITDA margin in 2021 for the combined entities.
Inside Secure posted revenue of $22.49 million with EBITDA of $3.16 million in the first half of 2018.