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Q&A: Aladdin - Safeword

Secure SafeWord is joining Aladdin!

While it's still too early to provide complete information on all of the details, we wanted to share with you everything that we could.

We are very excited by the opportunity that SafeWord presents for Aladdin, our customers, our channel partners and the many new Aladdin associates that are joining us now. We look forward to working with our new friends to expand the authentication and access management solutions and the services we offer to improve security and facilitate access.

To help share more information about this exciting combination we have put together a quick Q&A about the acquisition.


General Information

Q: What is Aladdin announcing today with Secure Computing?
A: We announced that we have signed a definitive agreement to acquire the Secure SafeWord product line for approximately $65 million in cash, including acquisition related expenses.

Q: What is SafeWord?
A: SafeWord two-factor authentication technology enables secure access to companies' most important information assets and applications. SafeWord's tokens seamlessly integrate with existing Microsoft infrastructure making it simple to deploy remote access authentication for VPNs, Citrix applications, Web apps, Webmail, and Outlook Web Access.

Q: Who are we buying it from?
A: Secure Computing (NASDAQ: SCUR), a leading provider of enterprise gateway security. They offer a comprehensive set of solutions that help customers protect their critical Web, email and network assets. There web site is

Q: What is SafeWord's annual revenue?
A: SafeWord produced revenue of $32 million for Secure Computing in 2007.

Q: When will the acquisition be completed?
A: The closing of the transaction is expected to be finished sometime in August of 2008. It is subject to customary closing conditions so this date could change, but we are trying to complete the acquisition as soon as possible.

Q: Why did Aladdin acquire SafeWord?
A: For many, many great reasons including:

  • This allows us to grow our authentication revenues by a substantial amount. SafeWord generated $32 million in revenue in 2007.
  • We instantly gain a very strong engineering team to expand our authentication R&D resources and accelerate the development of new solutions.
  • It gives a significant boost to our growing channel business in North America and the EU as SafeWord has a significant channel business today.

We are also gaining many new and very talented people for the Aladdin team see tremendous strength in SafeWord's ability to develop innovative and secure Authentication and software protection devices.

Q: Why did Secure Computing want to sell SafeWord?
A: Daniel Ryan, the CEO of Secure Computing put it in these words, "this sale enables Secure Computing to redouble its focus on its greatest strength and expertise – delivering comprehensive and integrated best of breed Web, mail and network gateway appliances."

Q: Why did Secure Computing choose Aladdin?
A: After considering a numerous prospective buyers, Secure Computing determined that Aladdin was the strongest partner, and the one best suited to ensure a seamless transition and continued best-in-class services and support for SafeWord customers and channel partners.


Secure SafeWord and Aladdin customers and partners

Q: How will SafeWord be integrated into Aladdin?
A: SafeWord will be fully integrated into the Aladdin authentication and access management business unit allowing us to expand our resources and our ability to deliver industry leading solutions and services.

Q: Will Secure SafeWord employees join Aladdin?
A: Yes, we hope they all do. We have worked closely with Secure Computing to keep the SafeWord team together and to ensure that all the talent and experience that made SafeWord so successful will continue with Aladdin. Secure Computing employees will join various Aladdin departments throughout the company and around the globe including R&D, sales, marketing, and services.

Q: How will the acquisition affect delivery of SafeWord solutions and services?
A: In the short term, we are working incredibly hard to make sure that the transition is transparent to SafeWord customers. As part of the agreement, Secure Computing will provide key support services for Aladdin until we have the systems and infrastructure in place to deliver equal or better services.

Q: How will Secure SafeWord customers benefit from the acquisition?
A: Secure SafeWord customers will receive all of the benefits, service and support they have come to value from Secure Computing plus they will soon have access to an expanded portfolio of solutions and more focused resources to help them address their authentication and access management needs.

Q: What are the benefits to Aladdin customers?
A: As Aladdin continues to grow and expand its R&D resources the result is a faster and more robust product roadmap, expanded product selection, with additional solutions and support resources.

Q: Will Aladdin keep SafeWord distributors and resellers?
A: Absolutely, this is one of SafeWord's strength and part of the reason this acquisition has so much appeal to us. Aladdin remains firmly committed to the channel and a two-step business model for all of its enterprise security solutions.

Q: How will the acquisition affect SafeWord technology partners?
A: SafeWord and Aladdin already have many of the same technology partnerships. Our business development team will evaluate new partnerships on a case-by-case basis.


Secure SafeWord employees

Q: What does this mean for Secure SafeWord employees?
A: Aladdin sees great value in SafeWord solutions and an even higher value in the dedicated employees that built this successful business to the point it is at today. We appreciate the experience and expertise of the SafeWord team and we welcome everyone who is joining us to the Aladdin family.

Q: Will Aladdin keep the SafeWord office in Concord?
A: Yes, this is our plan. Our decisions about facilities are based on what is in the best interest of our customers and employees. Concord is a great location and the team is happy there, so very little is left to debate.

Q: What are your plans relating to new product development?
A: As with previous acquisitions, our top priority is to make sure that all SafeWord and Aladdin customers continue to receive the same great products and services they have come to know and trust. We are excited by the prospect of being able to offer more value and additional products and services. We will continue to work closely with our customers to ensure their needs are fully satisfied.