SafeNet
 | |
| Company type | Subsidiary |
|---|---|
| Industry | Information security |
| Founded | 1983, in Timonium, Maryland |
| Headquarters | , United States |
Area served | Worldwide |
| Products | Encryption, Semiconductor IP, software monetization, Software as a Service, hardware security modules, authentication, security tokens |
Number of employees | 1,600 (2011) |
| Parent | Thales Group |
| Divisions | Data Protection, Software Monetization |
| Website | cpl.thalesgroup.com |
SafeNet, Inc. was an information security firm based in Belcamp, Maryland. In August 2014, it was acquired by the French company Gemalto, which itself became part of the Thales Group in 2019. SafeNet specialized in enterprise authentication, data encryption, and key management solutions. Its software monetization products are marketed under the Thales Sentinel brand.
As a prominent provider of encryption technologies to the United States Government, SafeNet held a substantial share of the enterprise security market.
On August 8, 2014, Gemalto agreed to purchase all outstanding shares of SafeNet from Vector Capital for $890 million on a debt-free basis. Subsequently, Thales Group completed its acquisition of Gemalto on April 2, 2019, thereby broadening its presence in digital identity and security sectors.
History
- 1983: Established as Industrial Resource Engineering in Timonium, MD by former NSA engineers Alan Hastings and Douglas Kozlay.
- 1986-1987: Anthony A. Caputo joined initially as a silent investor before becoming CEO; company renamed Information Resource Engineering (IRE).
- 1988: Secured Lawrence Livermore Labs as its first major client; operations relocated to White Marsh, MD.
- 1989: IRE went public via OTC pink sheets; emerged as a leader in banking communications security with seven of the top ten U.S. banks as clients and encryption devices used by SWIFT. Pioneered early "virtual private network" technology adopted by Bank of Montreal and Citibank.
- 1994-1995: Acquired Connective Strategies, Inc. and Swiss cryptography manufacturer Gretag Data Systems for $4 million.
- 1996: Its technology supported MCI Communications’ launch of the first commercial VPN service; within two years SafeNet was adopted by thirteen of the top fifteen U.S. banks.
- 1997-1998: Encountered a stock decline due to MCI contract restructuring; successfully fended off a hostile takeover bid.
- 2000: Rebranded as SafeNet, Inc., reflecting its VPN product line.
- Early 2000s: Co-founder Doug Kozlay departed; SafeNet acquired Dutch firm Securealink amid an industry downturn.
- 2003-2005: Expanded through multiple acquisitions including Cylink, Raqia Networks, SSH OEM business, Rainbow Technologies, Datakey, DMDSecure B.V., MediaSentry, and Eracom Technologies AG to broaden its product range and market reach.
- 2006: CEO and CFO resigned amid an options backdating scandal; former CFO later sentenced to prison in 2008.
- 2007: Vector Capital purchased SafeNet for $634 million, taking the company private.
- 2008-2009: Acquired Ingrian Networks and Beep Science AS; Vector Capital also acquired Aladdin Knowledge Systems; SafeNet divested MediaSentry.
- Late 2009-2012: Acquired Assured Decisions, LLC; divested Government Solutions division to Raytheon.
- August 2014: Acquisition by Gemalto announced.
- February 2015: Launched SafeNet Assured Technologies as a Gemalto subsidiary focused on delivering high-assurance data security solutions to the U.S. Government.
- April 2019: Thales Group finalized acquisition of Gemalto; established Thales Cloud Protection and Licensing for global markets; rebranded SafeNet Assured Technologies as Thales Trusted Cyber Technologies.
Current and Former Subsidiaries
SafeNet Government Solutions, previously known as SafeNet Mykotronx and once a subsidiary of Rainbow Technologies, is headquartered in Torrance, California, with additional offices located in Irvine and Columbia, Maryland. The company was originally established in 1979 under the name Myko Enterprises and rebranded as Mykotronx, Inc. in 1987. Following SafeNet’s acquisition of Rainbow Technologies in 2004, Mykotronx merged into SafeNet. Since then, it has been fully integrated into SafeNet's operations for financial reporting purposes and no longer functions as an independent subsidiary. This entity focuses on information and communications security technologies tailored for the United States government. It holds an indefinite-delivery, indefinite-quantity contract for its KIV-7 series of commercial off-the-shelf cryptographic devices, which secure digital and voice communications up to the TOP SECRET classification level. Among its primary government clients are the National Security Agency (NSA) and the National Reconnaissance Office. Additional significant products include the KOV-14 Fortezza Plus PC card, developed under the NSA’s NSSI initiative, which is utilized in Secure Terminal Equipment. The company is also credited with creating the Clipper chip.
In 2009, Vector Capital acquired Aladdin Knowledge Systems and placed it under SafeNet’s organizational umbrella; these two firms were officially consolidated into a single entity in 2010.