SanDisk Corporation (SNDK) today announced the acquisition of MDRM, a privately-held Israeli company that is focused on developing end-to-end solutions for distributing secure content through flash memory cards.
The transaction was completed on December 2, 2004. Terms were not disclosed, but sources inform "Globes" that the purchase price was $15 million.
MDRM was founded in 2002 by CEO Dan Harkabi and CTO Gidi Elazar. MDRM, which has offices in Israel and Sunnyvale, has worked closely with SanDisk and adapted the SanDisk flash controller to create a version of SanDisk's Cruzer USB flash drive that is capable of delivering valuable content in a protected and secure environment.
The first application of this technology is BookLocker, which allows students in grades K-12 to carry electronic versions of their textbooks on a device weighing less than 1 ounce. Students can therefore bring home schoolwork without toting heavy books or knapsacks. In addition, BookLocker offers textbook publishers a proven end-to-end system solution that keeps the content secure.
MDRM has been renamed SanDisk Secure Content Solutions and will continue to promote BookLocker with other partners through the US educational system.
This is SanDisk's first aqcuisition in Israel. It has a development center at Tefen that employs 45 people working on various flash developments. At a recent press conference in Tel Aviv, SandDisk founder and CEO Eli Harari said the developments at the Tefen center would contribute, at a conservative estimate, some $700 million to the company's top line in 2004.
Published by Globes [online], Israel business news - www.globes.co.il - on Tuesday, January 04, 2005