AXNT getting pounded today and should be on our watch list.
AXENT ACQUIRES PASSGO TECHNOLOGIES; GAINS ACCESS AND CONTROL SEC
urity Technologies Essential to e-business
Business/Technology Editors
ROCKVILLE, Md.--(BUSINESS WIRE)--March 31, 1999--AXENT Technologies, Inc. (NASDAQ:AXNT), one of the world's leading information security companies, today announced the acquisition of UK-based PassGo Technologies, a worldwide leader in centralized user access and control, including single sign-on (SSO) and password synchronization products.
Under the terms of the agreement, AXENT(TM) expects to issue approximately 1,550,000 shares to PassGo(TM) stockholders and option holders, resulting in a transaction value of approximately $50 million. The transaction will be accounted for as a purchase and AXENT anticipates an in-process research and development charge of up to 30 percent of the purchase price, with amortization of identifiable intangible assets anticipated over a three to five year period.
The acquisition strengthens AXENT's ability to provide security solutions critical to the growing e-business market. International Data Corporation(R), Ltd. (IDC(R)) estimates that the worldwide e-business market will be $111 billion in 1999 and grow to $734 billion by 2002. As corporations move to new business models leveraging the Internet, security is not only critical but becomes a "business enabler." AXENT has defined the security solutions required to enable e-business as e-security. AXENT's e-security offerings provide a powerful, comprehensive solution for effectively implementing and managing security across thousands of systems and millions of users in today's virtual corporations. PassGo's solutions meet several e-security requirements by providing users with simplified, secure access to information while allowing organizations deploying e-business applications to manage user access from a single point of control. "Companies today struggle to secure information as it is communicated via the Internet and extranets to partners, suppliers, customers and remote users throughout the world," said Chris Christiansen, program director, Internet Security at IDC. "Centralized access and control enables users to immediately access the critical data they need, increasing productivity and security across the enterprise." "PassGo has helped hundreds of companies throughout the world quickly deploy traditionally complex centralized access and control to business information," said John Becker, CEO and chairman of AXENT. "The addition of PassGo's customer-proven solutions to AXENT's e-security offerings significantly enhances our ability to help companies confidently conduct secure e-business for maximum competitive advantage."
PassGo's leading single sign-on technologies and password synchronization form a strong complement to AXENT's central authentication server and user administration capabilities. According to a recent Frost & Sullivan research report on the single sign-on market, AXENT and PassGo on a combined basis have the number one marketshare position. In addition, PassGo's security solutions provide support for mainframe environments that are critical to many large-scale e-business applications. Finally, PassGo has a strong customer base of more than two million users at over 700 Global 2000 organizations worldwide, with a significant European presence. "There is tremendous synergy between AXENT and PassGo, ranging from our commitment to customer satisfaction to converging technology initiatives that have integrated security with centralized management platforms from vendors like Tivoli and a new generation of Web commerce servers," said Jeff Carr, managing director of PassGo. "The hundreds of organizations using PassGo solutions worldwide can now leverage AXENT's breadth of security solutions and Lifecycle Security expertise to protect their vital information and enable secure e-business."
The addition of PassGo's proven and easy-to-deploy product line enhances AXENT's ability to deliver integrated products and expert services to assess, protect, enable and manage business processes and information assets through the unique AXENT Lifecycle Security(TM) approach.
AXENT will continue to support current AXENT and PassGo products, assuring customers of product availability and technical support that they rely upon. Moving forward, AXENT will work with customers on a plan to integrate the preferred functionality of PassGo's single sign-on and password synchronization products and AXENT's resource management solution as well as pursue integration opportunities with other AXENT products. About PassGo
PassGo Technologies is a worldwide leader in software solutions that simplify business information access and control. PassGo's product family includes PassGo InSync for password synchronization and PassGo SSO for secure single sign-on for large-scale, heterogeneous computing environments. PassGo's products enable users to immediately access the business critical data they need.
PassGo delivers business advantage through streamlined access to multiple, mission critical information sources and fortified security of business systems. PassGo increases productivity and security in Global 2000 companies, across the enterprise and in departments such as customer service, call center and direct banking. Visit PassGo's Web site at www.passgo.com. About AXENT(TM)
AXENT Technologies, Inc., a global leader in information security, provides e-security solutions that maximize our customers' competitive advantage. As a trusted partner, AXENT delivers integrated products and expert services to assess, protect, enable and manage business processes and information assets through our unique Lifecycle Security(TM) approach.
AXENT's award winning security solutions include policy compliance and assessment, firewall, intrusion detection, authentication, VPN, Web-access, single sign-on, and user administration for the entire enterprise.
Headquartered in Rockville, MD, AXENT's customer-proven information security solutions are used by Fortune 1000 companies and governments worldwide. Contact AXENT via e-mail at info@axent.com, or visit AXENT's World Wide Web site at vpo.axent.com.
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