Business News
Aladdin Knowledge Systems Acknowledges Receipt of Confidential Unsolicited Proposal From Vector Capital
Thursday 21. August 2008 - Aladdin Knowledge Systems (NASDAQ: ALDN), an information security leader specializing in authentication, software DRM and content security, in response to press reports, confirmed receipt of a confidential, unsolicited proposal from Vector Capital, a private equity firm, to acquire the Company.
Vector Capital’s proposal includes a potential alternative transaction of Vector Capital acquiring the Company’s DRM business, potentially combined with a repurchase by Aladdin of the shares of Aladdin purchased by Vector Capital, and the sale by SafeNet, Inc., a Vector affiliate, of its authentication business to Aladdin.
Consistent with its fiduciary duties and in consultation with its independent financial advisors and legal counsel, Aladdin’s Board of Directors is reviewing the proposal and will thereafter inform Aladdin’s stockholders of its position.
Yanki Margalit, Chairman and CEO of Aladdin Knowledge Systems, stated, “The Board of Directors of Aladdin, in consultation with its independent advisors, is carefully considering and reviewing Vector Capital’s proposal as part of our ongoing efforts to deliver enhanced shareholder returns. Our Board and management team remains fully committed to enhancing shareholder value and we are continuing to implement our strategic plan, which includes organic growth as well as complementary acquisitions, two of which we announced just this past month, designed to strengthen our portfolio of IT security offerings and increase our global brand recognition.”
Vector Capital through its wholly owned subsidiary, SafeNet, Inc., is a direct competitor of Aladdin. Both Vector Capital and SafeNet, Inc. are headquartered in the United States.
Credit Suisse Securities (USA) LLC is serving as financial advisors to Aladdin, Kramer Levin Naftalis & Frankel LLP is serving as U.S. legal counsel and Herzog, Fox & Ne’eman is serving as Israeli counsel to the Company.