Defence firm snaps up security company to help with cyber protection
Defence and aerospace company Ultra has acquired secure network communication offerings provider AEP Networks to enhance its security offerings.
The deal was for an initial cash consideration of $57.5m. A further sum of up to $17.5m will be paid to the vendors based on financial results to 31 December 2011, said the company.
AEP’s proprietary products are accredited by CESG/GCHQ, the UK government’s national technical authority for secure electronic communications.
AEP’s security offerings include network gateways that provide secure access to business applications via Web browsers and a ‘Security as a service’ offering known as ‘Cloud Protect’; essentially a ‘secure PC over the internet.’
AEP’s security offerings also include remote access hardware encryption products, hardware security modules for the protection and distribution of cryptographic keys and secure, modular communication systems for voice and data aggregation over multiple bearers, including GSM, ISDN and satellite.
The acquisition will be financed using Ultra’s existing facilities and is expected to be earnings-enhancing in 2011 before the amortisation of intangible and this acquisition is a bolt-on acquisition within Ultra’s Tactical & Sonar Systems division.
Ultra chief executive Rakesh Sharma said AEP provides important complementary technologies and products to advance Ultra’s strategy in the growing cyber security domain and AEP is a technology-rich company with intellectual property and wide global reach, operating in a fast-growing market place.
"AEP’s encryption and network communication capabilities have strong market-facing synergies with Ultra’s CIS, 3eTI, DNE, ProLogic and TCS businesses," said Sharma.