WISeKey International Holding Ltd has concluded the acquisition of the secure Internet of Things (“IoT”) integrated circuit solutions and semiconductor business from INSIDE Secure, an expert in embedded security solutions for mobile and connected devices.

The acquisition and technology integration of the Vault IC semiconductor business with WISeKey’s unique Root of Trust and Identity technology have created the first ever comprehensive trusted end-to-end cybersecurity platform for people and objects (IoT). This vertical integration from Vault IC hardware & software, system certification, provisioning and up to management of services will allow WISeKey to deliver the most secure Platform to its customers.

The successful transaction includes the transfer of products, technology, customer agreements, and certain patents from INSIDE Secure to WISeKey including the development and sale of secure integrated circuits designed to secure and power the strongly growing IoT market. Additionally, through this transaction, WISeKey will add a team of 70 people in areas such as R&D, sales, marketing and support to its overall staff amounting to a total of over 140 people, including staff in Switzerland, Vietnam, USA, Japan, Taiwan and Singapore, giving WISeKey a global reach.

The acquisition allows WISeKey to generate strong sales in new areas such as chip based IoT, anti-counterfeiting, brand protection, EMV payment card and secure access to building IT equipment. Of note, the business acquired from INSIDE Secure is expected to generate revenue (pro forma unaudited) of US$34 million in 2016 and generated approximately (pro forma unaudited) US$33 million revenue in 2015.

This acquisition, will provide synergistic cross-selling opportunities for the combined company. Specifically:

WISeKey will be able to offer its existing platform to over 20 INSIDE Secure clients including world leaders in IT infrastructure, smart metering and identification token technology such as CISCO, Landis + Gir and Gemalto which are already using the chips to secure their hardware, while the integrated circuit solutions and semiconductor technology acquired from INSIDE Secure will be offered to WISeKey’s current clients such as watch manufacturers.

WISeKey’s recent agreements should also drive additional revenue growth for the combined company by integrating the Vault IC solution with SAP’s industry-leading solutions as announced by both companies, reinforcing the current cybersecurity of SAP HANA, and also via the signed partnerships with Microsoft on CityNext and MasterCard on authentication and payment for wearable devices.

WISeKey could generate operational synergies from its expanded offerings and potentially increasing applications in a nascent IoT market via its strategic partnership with CenturyLink. As previously announced, CentruryLink is acting as managed service provider for WISeKey technology in USA and abroad among Nasdaq top 500 companies currently using CenturyLink technologies.

WISeKey’s Swiss based cryptographic RootKey brings the highest level of neutrality which opens new client acquisition streams specifically in the IoT and Industrial Internet markets requiring large deployment of trusted Digital Identities.

“We are thrilled to complete this acquisition. The acquisition of Vault IC is part of the new WISeKey strategy of buying strong and unique technology companies to reinforce its Vertical Cybersecurity Platform and creating strategic partnerships with companies with strong presence in areas such as IoT, cybersecurity, Quantum, AI and Blockchain. WISeKey intends to continue to grow its business through complementary acquisitions and/or partnerships”, said Carlos Moreira, Founder and CEO of WISeKey.