Safenet-Inc
Encyclopedia
SafeNet, Inc. is an information security
company based in Belcamp, Maryland
, United States
. It is notable as one of the largest suppliers of encryption technology to the United States Government.
The company's products are used in wide-area networks, wireless networks, digital rights management
, and other applications. SafeNet customers include corporations, governments, financial institutions, and OEM
s. Annual revenues are in the $300 million range and the company employs about 1,600 people.
The firm grew steadily during the 80's and 90's via organic growth. After the turn of the century SafeNet took a driving role in the information security market consolidation and acquired multiple companies in the following years, most notable acquisition being Rainbow Technologies
, a company twice the size of SafeNet in 2004.
In 2006 SafeNet got caught up in the options backdating
controversy. As a result both the Chief Executive Officer
and the Chief Financial Officer
resigned and in 2008 the company's former CFO was sentenced to six months in prison for manipulating employee stock options.
Today, SafeNet is the third largest Information Security company with revenues ~$500M.
subsidiary SafeNet Government Solutions, LLC formerly SafeNet Mykotronx is still based in Torrance, California with offices in Irvine, California and Columbia, Maryland. SafeNet Government Solutions, LLC has been operationally merged into SafeNet, and the lines between the two organizations have been intentionally blurred due to financial reasons. SafeNet Government Solutions is no longer considered a subsidiary.
SafeNet Government Solutions, LLC formerly Mykotronx provides INFOSEC and COMSEC technology for the US government. The firm has an indefinite-delivery, indefinite-quantity contract for its KIV-7
line of commercial off-the-shelf
cryptographic devices that provide protection for digital and voice communications through TOP SECRET
, used by agencies such as the NSA and the NRO
.
Other SafeNet Government Solutions, LLC products include the KOV-14 Fortezza Plus
PC card which was developed as part of the NSA
's NSSI program and is used on Secure Terminal Equipment
. They previously developed the clipper chip
.
The company was founded in 1979 as Myko Enterprises. It changed its name to Mykotronx, Inc in 1987 and merged with SafeNet as part of the SafeNet merger with Rainbow in 2004.
, and placed it under SafeNet with the annotation of 'under common management', although it has been operationally merged with SafeNet.
Information security
Information security means protecting information and information systems from unauthorized access, use, disclosure, disruption, modification, perusal, inspection, recording or destruction....
company based in Belcamp, Maryland
Maryland
Maryland is a U.S. state located in the Mid Atlantic region of the United States, bordering Virginia, West Virginia, and the District of Columbia to its south and west; Pennsylvania to its north; and Delaware to its east...
, United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
. It is notable as one of the largest suppliers of encryption technology to the United States Government.
The company's products are used in wide-area networks, wireless networks, digital rights management
Digital rights management
Digital rights management is a class of access control technologies that are used by hardware manufacturers, publishers, copyright holders and individuals with the intent to limit the use of digital content and devices after sale. DRM is any technology that inhibits uses of digital content that...
, and other applications. SafeNet customers include corporations, governments, financial institutions, and OEM
Original Equipment Manufacturer
An original equipment manufacturer, or OEM, manufactures products or components that are purchased by a company and retailed under that purchasing company's brand name. OEM refers to the company that originally manufactured the product. When referring to automotive parts, OEM designates a...
s. Annual revenues are in the $300 million range and the company employs about 1,600 people.
History
SafeNet, Inc was originally founded as Industrial Resource Engineering by two NSA engineers in 1983 and went public in an IPO in 1989.The firm grew steadily during the 80's and 90's via organic growth. After the turn of the century SafeNet took a driving role in the information security market consolidation and acquired multiple companies in the following years, most notable acquisition being Rainbow Technologies
Rainbow Technologies
Rainbow Technologies was an encryption and information security company based in Orange County, California, that was acquired by SafeNet, Inc. in 2003. Through its acquisition of Mykotronx, Rainbow Technologies was responsible for developing and supporting top secret encryption devices used by the...
, a company twice the size of SafeNet in 2004.
In 2006 SafeNet got caught up in the options backdating
Options backdating
Options backdating is the practice of issuing options contracts on a later date than that which the options have listed. While options backdating is not, in and of itself, an illegal practice, intentional backdating that coincides with low underlying stock prices and accounting reports that claim...
controversy. As a result both the Chief Executive Officer
Chief executive officer
A chief executive officer , managing director , Executive Director for non-profit organizations, or chief executive is the highest-ranking corporate officer or administrator in charge of total management of an organization...
and the Chief Financial Officer
Chief financial officer
The chief financial officer or Chief financial and operating officer is a corporate officer primarily responsible for managing the financial risks of the corporation. This officer is also responsible for financial planning and record-keeping, as well as financial reporting to higher management...
resigned and in 2008 the company's former CFO was sentenced to six months in prison for manipulating employee stock options.
Today, SafeNet is the third largest Information Security company with revenues ~$500M.
Timeline
- 1983: Industrial Resource Engineering founded.
- 1987: IRE renamed to Information Resource Engineering
- 1989: IRE's IPO raised $4 million
- 1989: IRE listed in NasdaqNASDAQThe NASDAQ Stock Market, also known as the NASDAQ, is an American stock exchange. "NASDAQ" originally stood for "National Association of Securities Dealers Automated Quotations". It is the second-largest stock exchange by market capitalization in the world, after the New York Stock Exchange. As of...
- 1995: IRE released the first VPN system, called SafeNet
- 1999: IRE renamed to SafeNet, Inc. after the VPN product line
- 2002: SafeNet acquired a Dutch company Securealink
- February 2003: SafeNet acquired Cylink and Raqia Networks
- October 2003: SafeNet acquired the OEMOEMOEM means the original manufacturer of a component for a product, which may be resold by another company.OEM may also refer to:-Computing:* OEM font, or OEM-US, the original character set of the IBM PC, circa 1981...
business of SSH Communications SecuritySSH Communications SecuritySSH Communications Security' is a Finnish company that is based in Helsinki and was founded by Tatu Ylönen in 1995. It is known as the original developer of the Secure Shell protocol and it currently has about 55 employees. The company's current CEO is Tatu Ylönen... - March 2004: SafeNet acquired Rainbow TechnologiesRainbow TechnologiesRainbow Technologies was an encryption and information security company based in Orange County, California, that was acquired by SafeNet, Inc. in 2003. Through its acquisition of Mykotronx, Rainbow Technologies was responsible for developing and supporting top secret encryption devices used by the...
- December 2004: SafeNet acquired Datakey, Inc
- April 2005: SafeNet acquired DMDSecure B.V.
- June 2005: SafeNet acquired MediaSentryMediaSentryMediaSentry was a United States company that provided services to the music recording, motion picture, television, and software industries for locating and identifying IP addresses that are engaged in the use of online networks to share material in a manner said organizations claim is in violation...
- December 2005: SafeNet acquired Eracom Technologies AG
- 2006: SafeNet got caught up in the options backdating controversy (see above)
- April 2007: a Californian equity company Vector Capital bought the firm for $634 million, making it private
- April 2008: SafeNet acquired Ingrian Networks, Inc.
- May 2008: SafeNet acquired Beep Science AS
- March 2009: SafeNet parent company, Vector Capital acquired Aladdin Knowledge SystemsAladdin Knowledge SystemsAladdin Knowledge Systems was a company that produced software for digital rights management and Internet security. The company was by SafeNet Inc, in 2009. Its corporate headquarters are located in Belcamp...
- April 2009: SafeNet sold MediaSentryMediaSentryMediaSentry was a United States company that provided services to the music recording, motion picture, television, and software industries for locating and identifying IP addresses that are engaged in the use of online networks to share material in a manner said organizations claim is in violation...
to ArtistDirect - December 2009: SafeNet acquired Assured Decisions, LLC
SafeNet Government Solutions, LLC (Formally Mykotronx)
The former Rainbow TechnologiesRainbow Technologies
Rainbow Technologies was an encryption and information security company based in Orange County, California, that was acquired by SafeNet, Inc. in 2003. Through its acquisition of Mykotronx, Rainbow Technologies was responsible for developing and supporting top secret encryption devices used by the...
subsidiary SafeNet Government Solutions, LLC formerly SafeNet Mykotronx is still based in Torrance, California with offices in Irvine, California and Columbia, Maryland. SafeNet Government Solutions, LLC has been operationally merged into SafeNet, and the lines between the two organizations have been intentionally blurred due to financial reasons. SafeNet Government Solutions is no longer considered a subsidiary.
SafeNet Government Solutions, LLC formerly Mykotronx provides INFOSEC and COMSEC technology for the US government. The firm has an indefinite-delivery, indefinite-quantity contract for its KIV-7
KIV-7
The KIV-7 is a National Security Agency Type-1, single-channel encryptor originally designed in the mid 1990s by AlliedSignal Corporation to meet the demand for secure data communications from personal computers , workstations, and FAXs...
line of commercial off-the-shelf
Commercial off-the-shelf
In the United States, Commercially available Off-The-Shelf is a Federal Acquisition Regulation term defining a nondevelopmental item of supply that is both commercial and sold in substantial quantities in the commercial marketplace, and that can be procured or utilized under government contract...
cryptographic devices that provide protection for digital and voice communications through TOP SECRET
Top Secret
Top Secret generally refers to the highest acknowledged level of classified information.Top Secret may also refer to:- Film and television :* Top Secret , a British comedy directed by Mario Zampi...
, used by agencies such as the NSA and the NRO
NRO
NRO may stand for:* National Reconnaissance Office, a United States intelligence agency whose primary purpose is the maintenance of that country's reconnaissance satellites* National Review Online, web version of the magazine National Review...
.
Other SafeNet Government Solutions, LLC products include the KOV-14 Fortezza Plus
KOV-14
The KOV-14 Fortezza Plus is a US National Security Agency-approved PC card which provides encryption functions and key storage to the Secure Terminal Equipment and other devices...
PC card which was developed as part of the NSA
National Security Agency
The National Security Agency/Central Security Service is a cryptologic intelligence agency of the United States Department of Defense responsible for the collection and analysis of foreign communications and foreign signals intelligence, as well as protecting U.S...
's NSSI program and is used on Secure Terminal Equipment
Secure Terminal Equipment
Secure Terminal Equipment is the U.S. Government's current , encrypted telephone communications system for wired or "landline" communications. STE is designed to use ISDN telephone lines which offer higher speeds of up to 128k bits per second and are all digital...
. They previously developed the clipper chip
Clipper chip
The Clipper chip was a chipset that was developed and promoted by the U.S. National Security Agency as an encryption device to be adopted by telecommunications companies for voice transmission...
.
The company was founded in 1979 as Myko Enterprises. It changed its name to Mykotronx, Inc in 1987 and merged with SafeNet as part of the SafeNet merger with Rainbow in 2004.
Aladdin Knowledge Systems
In 2009, Vector Capital acquired Aladdin Knowledge SystemsAladdin Knowledge Systems
Aladdin Knowledge Systems was a company that produced software for digital rights management and Internet security. The company was by SafeNet Inc, in 2009. Its corporate headquarters are located in Belcamp...
, and placed it under SafeNet with the annotation of 'under common management', although it has been operationally merged with SafeNet.