SafeNet, Inc. was an information security company based in Belcamp, Maryland, United States. The company is now the fifth largest vendor in the security market and third largest provider of information security solutions in the world with revenues ~$500M.
On 8 August 2014, Gemalto announced that it had signed a definitive agreement to acquire 100% of the share capital of SafeNet from Vector Capital for US$890 million on a debt free/cash free basis. It was notably one of the largest suppliers of encryption technology to the United States Government.
Now part of Gemalto and marketed under the SafeNet product brand, offerings include enterprise authentication, data encryption, and key management. SafeNet's software monetization products are now offered under Gemalto's Sentinel brand.
1983: SafeNet, Inc was founded in 1983 as Industrial Resource Engineering by two NSA engineers and one entrepreneur named Anthony A Caputo.
1987: Information Resource Engineering renamed to IRE
1989: IRE went public in an IPO. IRE's IPO raised $4 million
1989: IRE listed in Nasdaq. IRE rapidly becomes the leader in banking communications security with seven of the top 10 U.S. banks as customers and encryption devices used by Swift (global interbank transfer system). IRE's Zurich based subsidiary provided security for UBS and Swiss Canton interbank network.
1994: IRE acquired Connective Strategies, Inc. Connective Strategies was co-founded by CEO Charles D. Brown and VP of Operations Gary L. McGreal. McGreal was formerly a Director at University of Southern California's computer science think tank, Information Sciences Institute. Charles Brown installed the first Internet Node used by the USAF in 1980 while serving as the Liaison to the USAF Strategic Air Command for the University of Southern California's Information Sciences Institute under contract for DARPA's Internet conception program. Charles taught the 13 Directorates at SAC Headquarters how to use office automation from 1980 to 1982 and participated in early experiments at Strategic Air Command using TCP-IP based networks for airborne and tactical command and control applications. Charles later became the Liaison to Washington D.C. for USC-ISI at DARPA Headquarters.
1995: IRE released the first commercial VPN system, called SafeNet. SafeNet was conceived by Charles Brown and quickly adopted by MCI-WorldCom and Vinton G. Cerf, then head of MIC-Worldcom's Data Network Architecture. SafeNet was specified by Gary L. McGreal, based on designs originally developed at NSA. Gary McGreal became VP of Marketing after the merger with IRE. Charles Brown served as EVP of Sales and Business Development and sold the VPN product into MCI and cisco Systems. Charles Brown had worked closely with MCI VP, Vint Cerf while at SAC and MCI. Vint Cerf is best known as the co-designer of TCP-IP, the protocol suite used in the Internet. Other early customers included the NSA and the FBI.
1996: MCI Communications launched the first commercial VPN service using SafeNet technology. This service produced recurring revenue from SafeNet's trusted third party secure DES key distribution center. IRE's NASDAQ listed stock rose 10 fold, and Anthony Caputo, then CEO, and Charles Brown raised $24 million in a secondary offering managed by Ferris Baker Watts. SafeNet was adopted by 13 of the top 15 U.S. banks within two years.
2000: IRE renamed to SafeNet, Inc. after the VPN product line. Charles Brown acquired the rights to the SafeNet name for $75,000.
2002: SafeNet acquired a Dutch company Securealink. With the collapse of the tech "bubble" SafeNet, as a public company with a strong sales channel, was able to acquire a series of promising security companies at deep discounts.
February 2003: SafeNet acquired Cylink and Raqia Networks
October 2003: SafeNet acquired the OEM business of SSH Communications Security
March 2004: SafeNet acquired Rainbow Technologies
December 2004: SafeNet acquired Datakey, Inc
April 2005: SafeNet acquired DMDSecure B.V.
June 2005: SafeNet acquired MediaSentry
December 2005: SafeNet acquired Eracom Technologies AG
2006: SafeNet was involved in the options backdating controversy. As a result, both the Chief Executive Officer and the Chief Financial Officer resigned and in 2008 the company's former CFO was sentenced to six months in prison for manipulating employee stock options.
April 2007: a Californian equity company Vector Capital bought the firm for $634 million, making it private
April 2008: SafeNet acquired Ingrian Networks, Inc.
May 2008: SafeNet acquired Beep Science AS
March 2009: SafeNet parent company, Vector Capital acquired Aladdin Knowledge Systems
April 2009: SafeNet sold MediaSentry to ArtistDirect
December 2009: SafeNet acquired Assured Decisions, LLC
December 2012: SafeNet sold its Government Solutions business unit to Raytheon
August 2014: SafeNet announced it is to be acquired by Gemalto by the 4Q 2014
The former Rainbow Technologies subsidiary SafeNet Government Solutions, LLC formerly SafeNet Mykotronx is still based in Torrance, California with offices in Irvine, California and Columbia, Maryland. The company was founded in 1979 as Myko Enterprises. It changed its name to Mykotronx, Inc in 1987 and merged with SafeNet as part of the SafeNet merger with Rainbow in 2004. SafeNet Government Solutions, LLC has been operationally merged into SafeNet and the lines between the two organizations have been intentionally blurred due to financial reasons. SafeNet Government Solutions is no longer considered a subsidiary. SafeNet Government Solutions, LLC provides INFOSEC and COMSEC technology for the US government. The firm has an indefinite-delivery, indefinite-quantity contract for its KIV-7 line of commercial off-the-shelf cryptographic devices that provide protection for digital and voice communications through TOP SECRET, used by agencies such as the NSA and the NRO. Other products include the KOV-14 Fortezza Plus PC card which was developed as part of the NSA's NSSI program and is used on Secure Terminal Equipment. They previously developed the clipper chip.
In 2009, Vector Capital acquired Aladdin Knowledge Systems, and placed it under SafeNet with the annotation of 'under common management'. In 2010, the two companies were officially merged.
