Irdeto acquires US firm Cloakware for $72.5mn

December 4, 2007 – Content security firm Irdeto has announced the acquisition of Cloakware, a privately held US software company, for $72.5mn. 

Irdeto and Cloakware have had a long standing partnership developing solutions to prevent piracy and subscription fraud in digital video and IP networks, and Irdeto expects the acquisition to add enterprise, government and consumer electronics solutions to its current portfolio.  Cloakware’s previous shareholders included venture capital funds Fairhaven Capital, Globespan Capital Partners and Intel Capital.

“Through a partnership our two companies initially formed in 2003, we have personal experience with the high quality of Cloakware’s products and people,” said Graham Kill, CEO of Irdeto.  “This acquisition strengthens our existing content security offering, broadens Irdeto’s reach across the entire content lifecycle and vertically expands our offering into new markets.”

Cloakware’s customers include Texas Instruments, Pioneer Electronics, NXP, State Street and Vodafone, representing enterprise, government, content distributors and manufacturers of consumer electronics, mobile devices, PCs and software.

David Canellos, interim President of Cloakware, added: “Joining the Irdeto group of companies will enable us to better serve our existing customers and continue to expand the business.  Using Irdeto’s extensive worldwide network of customers and partners, Cloakware will now have a footprint in Asia and other emerging markets.”