Verimatrix sells its Silicon IP and Secure Protocols business unit to Rambus
Verimatrix, formerly known as Inside Secure, a global provider of security and analytics solutions that protect devices, services and applications, announced the completion of the sale of its Silicon IP and Secure Protocols business unit to Rambus for a total cash consideration of $65 million including an earn-out.
Verimatrix received an amount of $45m at closing and could receive an additional amount of up to $20 million, subject to completion of certain revenue targets for the transferred business for the calendar year 2020.
This transaction increases Verimatrix’ focus as a pure player in software-based security and business intelligence solutions, while substantially improving the company’s financial flexibility thanks to a strengthened balance-sheet.
At completion of the transaction, Verimatrix’s net debt is estimated at $17.5 million and $(2.5) million in case the earn out is achieved in full (compared with net debt of $61.1 million as of June 30, 2019).
Shearman & Sterling (corporate law) and Constantin Pavleas Avocats (IP law) served as legal counsel to Verimatrix in connection with the transaction, and Wilson Sonsini Goodrich & Rosati (California) and Taylor Wessing (France) served as legal counsels to Rambus.