STONEHAM, Mass. -- nCipher plc (LSE: NCH), a global leader in protecting critical enterprise data, announces it has acquired the majority of the intellectual property and assets of NeoScale Systems Inc. (NeoScale), a leading provider of encryption and key management products within the storage security market.
NeoScale, a venture-backed private company, based in Milpitas, California, provides a series of appliance-based encryption products under the CryptoStor brand. These are well proven and widely deployed in hundreds of customer locations worldwide, protecting sensitive information stored primarily on back-up tapes and therefore avoiding concerns over data privacy in the event the back-up tapes are stolen or misplaced.
This acquisition of the CryptoStor tape product line provides a valuable addition to nCiphers product range, accelerating and strengthening nCiphers position in the rapidly expanding storage encryption market. In addition, nCipher has also acquired the NeoScale KeyVault technology and product line which will be used to further enhance nCiphers keyAuthority enterprise key management product.
In addition to enhancing nCiphers product portfolio, this acquisition will strengthen the Companys customer base and provide expansion opportunities in the North American and international markets. NeoScale has built an impressive network of resellers and OEM channels which has the potential to provide nCipher with the opportunity to address the encryption needs of new customers in a cost-effective manner and provide its channel partners with a wider and more compelling value proposition.
Commenting on the acquisition, Geoffrey Finlay, Chief Executive Officer, nCipher plc said:
High profile security breaches and regulatory pressure have propelled tape drive and storage encryption to the top of the priority list for data owners. The purchase of these assets by nCipher allows us to build on NeoScale's solid reputation for high quality products and first rate support.
We are delighted to add NeoScales in-line encryption appliance to our product portfolio to provide both new revenue opportunities and to extend the reach and scope of nCiphers keyAuthority key management system. We intend to engage with NeoScales existing customers and channel partners as we seize this opportunity to further strengthen our position in the encryption market and expand our customer base. This acquisition reinforces nCiphers commitment to the important and growing storage security market, particularly in North America.