Home News Vasco acquires University of Cambridge spin-out Cronto

Vasco acquires University of Cambridge spin-out Cronto

by Brian Sims

Vasco Data Security International, a software security company, has announced its acquisition of Cronto, a provider of secure visual transaction authentication solutions for online banking. Vasco acquired all of the stock of Cronto in exchange for an initial cash consideration of Euro 15 million and a contingent cash consideration in the form of an earn-out of up to a maximum of Euro 2 million. The acquisition was financed from existing cash balances. The acquisition is expected to be dilutive in 2013, due in large part to the amortisation of purchased intangible assets. The acquisition is expected to be accretive in 2014. Cronto was founded in 2005 as a University of Cambridge spin-out and is active in the field of secure visual transaction authentication and signature solutions for online banking applications. The CrontoSign solution has been chosen to secure transactions of customers of German and Swiss banks such as Commerzbank AG and Raiffeisen Switzerland. CrontoSign technology is a simple and user friendly way to withstand sophisticated attacks by Trojan malware, targeting online banking services. CrontoSign protects against such attacks as it allows the bank to establish a secure optical communication channel with the client. Account holders can simply scan a CrontoSign image displayed on their bank’s website and verify the details of the payment on a trusted display. They can choose between the CrontoSign mobile application or a dedicated CrontoSign hardware device. Vasco will add the patented products to its offerings for the global banking market. ‘The acquisition of Cronto is a strong example of Vasco investing in its future growth’, stated T Kendall Hunt, Vasco’s Chairman and CEO. ‘Through our make-or-buy strategy for new technologies, we will keep scanning the market for suitable companies.’ Jan Valcke, Vasco’s President and COO, added, ‘Our objectives are to reinforce our leadership position in the banking authentication market and to become a successful business-to-consumer authentication services provider. The acquisition of Cronto is a significant step forward in helping us achieve both objectives.’

You may also like