Baltimore Technologies to Buy GTE Unit for $150 Mln
Baskingstoke, United Kingdom, Jan. 17 (Bloomberg) --
Baltimore Technologies Plc, Europe's largest maker of software
for encrypted communication and commerce, agreed to buy rival GTE
Corp.'s CyberTrust Solutions Inc. for $150 million in stock to
boost its U.S. business.
CyberTrust, based in Needham Heights, Massachusetts, sells
network security software to large U.S. companies, including
American Express Co. and MasterCard International Inc.
Baltimore Technologies has sought to increase its market
share in the U.S., where the growing popularity of electronic
commerce has expanded demand for encrypted software. The
acquisition will give it a large list of U.S. customers and added
services with which to compete against rivals VeriSign Inc. and
Entrust Technologies Inc.
``The market is growing, and some companies don't grow fast
enough and get marginalized,' Baltimore Technologies' Executive
Vice President Paddy Holahan said.
Intel Corp. owns about 4 percent of Baltimore Technologies,
which is based in Baskingstoke, United Kingdom, and Dublin. The
company listed American depositary receipts on the Nasdaq Stock
Market in October.
Baltimore Technologies shares rose 1317.5 pence, or 24
percent, to 6787.5 pence in London, after reaching a 52-week high
of 7050. Its ADRs rose 5 13/16 to 89 1/16 Friday in the U.S. and
have more than tripled in a year. GTE rose 7/8 to 66 Friday. |
