London-based electronic security firm Baltimore Technologies PLC plans to acquire Needham, Massachusetts-based GTE CyberTrust Solutions Inc. for US$150 million.
The acquisition, funded by the issue of Baltimore Technologies stock, is expected to increase Baltimore's market share in electronic-business and e-commerce security, especially in the public key infrastructure (PKI) arena, the company said today.
Baltimore Chief Executive Officer Fran Rooney said in a statement that the acquisition is one of several strategic global moves designed to better position the firm in e-commerce security.
"What we're doing is buying out one of our competitors at a good price," said Baltimore Technologies spokesman Paddy Holihan. "We already have the best technology, and now we get a hosted service, which our customers are asking for. We also get (U.S.) blue-chip clients, like American Express, Visa, MasterCard and Wells Fargo Bank, and an increasing U.S. market base. This is a great step for us."
The acquisition, subject to the approval of Baltimore Technologies shareholders, is expected to close in mid-March.