"We know that there will be a lot of speculation about our intentions for Aladdin, and we want to reassure. We haven’t come here to take things apart; we came here to put things together and combine forces," said SafeNet president and COO Christopher Fedde today. SafeNet Inc. today completed its takeover of Aladdin Knowledge Systems Ltd.
Fedde added, "The base in Israel will become the company's largest base outside the US, and the Israeli managers will receive new responsibilities in the merged company."
Aladdin's acquisition by Vector Capital was completed yesterday and the company was delisted from the Tel Aviv Stock Exchange (TASE) and Nasdaq. The US private equity fund acquired the company for $160 million, after acquiring SafeNet, a competitor of Aladdin, for $634 million in 2006.
SafeNet today admitted that several now redundant positions will be eliminated, and some Aladdin employees will leave or lose their jobs. "As a matter of policy, we do not comment on employee related matters, but we're deviating from our policy in this case," said Fedde. "The number of Israeli employees who will leave or lose their jobs is not large, and in percentage terms it will be a single-digit number."
270 of Aladdin's 500 employees are in Israel, and Fedde's comment implies that no more than 26 employees will lose their jobs. The layoffs will be made this week.
Aladdin CFO Aviram Shemer said, "The production facility in Kiryat Gat will remain, the R&D in Israel will remain, and the headquarters in Petah Tikva will receive new responsibilities relating to the merged company's activity outside the US."
Shemer is one Aladdin executive who will receive more responsibilities in the wake of the merger, becoming CFO of SafeNet's international business. Aladdin VP eToken Shlomi Yanai is another executive who will receive new responsibilities, as head of business verification in the merged company.
Aladdin founder, president and CEO Yanki Margalit will leave.
Fedde noted, "The merger has turned us into a $500 million company, and the fifth largest information security company in the world." Later, he told "Globes" that SafeNet aims to again become a public company through a new offering on a stock exchange. "Were it not for the crisis, this could have happened this year. The timing of the offering depends solely on the markets," he said.
Published by Globes [online], Israel business news - www.globes-online.com - on March 25, 2009
© Copyright of Globes Publisher Itonut (1983) Ltd. 2009