About

SafeNet offers a full suite of data protection solutions to: (i) protect the identities of users and applications; (ii) secure their transactions; (iii) encrypt the data when it is created, accessed, shared and stored. The company’s authentication solutions secure access to data and applications. Its encryption solutions protect data and the cryptographic keys used to encrypt the data. Its software monetization solutions provide software licensing and entitlement management to software developers, allowing them to flexibly manage, package, control, and track their applications

Insight & Approach

In 2006, SafeNet was reeling from a stock option backdating scandal and the related SEC investigation. Vector identified SafeNet as the clear technology leader in the data protection space; however, due to the options backdating the company was going to be unable to pass an audit. Vector developed a relationship with the management team, and proactively studied the company’s business, technology, and end-markets. In 2007, Vector completed a buyout of SafeNet, the first leveraged buyout of a public company with unaudited financials.

Vector Value Add

Shortly after the acquisition, Vector settled the SEC overhang, strengthened the company’s executive ranks, divested non-core businesses, and completed a number of acquisitions. In 2009, Vector acquired SafeNet’s largest competitor, Tel Aviv-based Aladdin Knowledge Systems. In 2012, Vector successfully divested SafeNet’s declining Government Solutions business to Raytheon.

Results

In August of 2014, Vector announced a definitive agreement to sell SafeNet to Gemalto (Euronext NL0000400653 - GTO) for $890 million. The transaction was completed on January 8th, 2015.