VeriSign To Acquire Certicom For $73 Million

January 25 2009No Commented

Categorized Under: Cell Phones

VeriSign is planning to buy Certicom about three days after Research in Motion decided to pull out of a hostile bid for the security company.  VeriSign will buy Certicom for $73 million.  Certicom is an elliptic curve cryptography company.  VeriSign plans to enter new markets through the use of Certicom’s ECC public-key encryption technologies.

VeriSign one upped RIM’s deal by $21 million.  RIM proposed $52 million to buy out Certicom from their shareholders this past December.  To counter the bid, Certicom filed a lawsuit to block the bid stating that RIM breached nondisclosure agreements.  This past Monday, a court ruling stated that RIM did in fact breach the agreements and shareholders were unable to accept the offer.

RIM already owns several forms of ECC technology, but the acquisition of Certicom would have made things more cost-effective.  Certicom expects that their shareholders will accept the VeriSign deal and that the transaction will close in March.

[via AP]

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