NW_20060516_VASCO Announces Acquisition of Authentication Storage Specialist Logico
OAKBROOK TERRACE, Ill., and BRUSSELS, Belgium, May 16, 2006 - VASCO Data Security International, Inc. (NASDAQ: VDSI), (www.vasco.com ), the global number one vendor of strong user authentication products to the financial sector, today announced its acquisition of Logico Smart Card Solutions of Vienna, Austria, an authentication storage specialist with extensive experience in smart card based authentication (www.logico.com ). VASCO acquired all of the stock of Logico, in exchange for cash consideration totalling Euro 1.14 million (approximately $1.5 million). The acquisition was financed completely with VASCO’s cash and is expected to be slightly dilutive in fiscal 2006.
Logico is an established, privately-owned company with customers in the healthcare, manufacturing industry and government markets and a significant technical expertise in the smart card related password security and PKI markets. Logico generated revenues of approximately Euro 0.8 million in 2005.
With the acquisition of Logico, VASCO expands and strengthens its product line and position in the smart card enabled password and PKI market for large, medium and small sized companies. Logico’s authentication product line is in perfect synergy with VASCO’s strong authentication strategy. With the addition of Logico’s technical expertise, VASCO expects to be able to further accelerate its evolution towards the “Full Option, All-Terrain Authentication Company”.
“Logico adds substantially to VASCO’s quickly growing authentication offerings,” said Jan Valcke, VASCO’s President and COO. “During our January Press and Investor Meeting in New York, we announced our new product strategy, turning VASCO into the “full option, all-terrain Authentication Company. With Logico, we are well armed to tackle the smart card enabled PKI/Certificates and password based authentication markets. In addition, Logico brings us a number of highly experienced developers, which allows us to accelerate the development of VASCO’s authentication strategy with regards to smart card based authentication and PKI software.”
“The opportunities in the authentication market are huge,” said Ken Hunt, VASCO’s Founder, Chairman and CEO. “At the end of 2004, VASCO implemented a make-or-buy strategy to expand its leadership position. The acquisition of Logico fits perfectly in this strategy. In the first place there is a great synergy between VASCO’s existing product range and Logico’s technologies. Secondly, we further expand our team of developers. Thirdly, with Logico we have a strong presence in the German speaking countries, a strategically important market for VASCO.”
"The authentication market is booming worldwide," said Wolfgang Kallny, CEO of Logico. "Therefore, Logico has looked for a strong, global partner. VASCO, as worldwide leader in the authentication sphere, was an ideal candidate. I am convinced that the combination of the experience, market vision, R&D capacity and extended product range of both companies will allow them to be successful all over the world."
About VASCO: VASCO designs, develops, markets and supports patented user authentication products for financial world, remote access, e-business and e-commerce. VASCO’s user authentication software is delivered via its Digipass hardware and software security products. With approx. 25 million Digipass products sold and delivered, including the units sold by AOS Hagenuk prior to our acquisition, VASCO has established itself as a world-leader for strong User Authentication with over 470 international financial institutions and approximately 2,600 blue-chip corporations and governments located in more than 100 countries.
Forward Looking Statements
Statements made in this news release that relate to future plans, events or performances are forward-looking statements. Any statement containing words such as “believes,” “anticipates,” “plans,” “expects,” and similar words, is forward-looking, and these statements involve risks and uncertainties and are based on current expectations. Consequently, actual results could differ materially from the expectations expressed in these forward-looking statements.
Reference is made to the Company's public filings with the US Securities and Exchange Commission for further information regarding the Company and its operations.
For more information contact:
Jochem Binst, +32 2 456 9810, [email protected]