Satellite broadband specialist ViaSat has snapped up privately-held data encryption expert Stonewood Group for approximately US$20m in a cash and stock deal.
The final purchase price could change slightly as ViaSat is still in the process of completing…
Satellite broadband specialist ViaSat has snapped up privately-held data encryption expert Stonewood Group for approximately US$20m in a cash and stock deal.
The final purchase price could change slightly as ViaSat is still in the process of completing its valuation analysis, including adjustments based on certain transaction expenses and outstanding third party debt. ViaSat also stated that under the terms of the transaction it has the right to substitute additional cash for some or all of its common stock to be issued at closing.
The acquisition is expected to have no material impact to ViaSat’s pro forma earnings during the next twelve months. The transaction is subject to customary conditions and is expected to be completed within 45 days. Cavendish Corporate Finance advised Stonewood on the sale.
Founded in the UK in 1995, Stonewood designs and manufactures products that are used to encrypt data on computer hard drives so that a lost or stolen laptop does not result in the compromise of classified information or the loss of intellectual property. Among its customers are a number of government defence agencies as well as aerospace companies.
In 2007, Stonewood secured a funding round led by majority shareholder and communications software pioneer Brendan Forster. At various stages Forster has been CEO and chairman of Stonewood having previously been the first Group IT director of mobile phone business Carphone Warehouse.
Commenting on the acquisition, Jerry Goodwin, ViaSat vice president said: “The strong growth of wireless secure networks enabled by our High Assurance Internet Protocol Encryption (HAIPE) products has led to the need for secure storage at the edges of the network. We believe that Stonewood products and technologies will enhance our security offerings, and we expect Stonewood to constitute a key part of our overall security strategy going forward.”
