SOURCE: Irdeto

December 04, 2007 08:00 ET

Irdeto Strengthens Content Security Solutions and Expands Security Portfolio With Acquisition of Cloakware

Content Security Pioneer Enhances Its Existing Pay Media Security Solutions and Expands Market Reach to Include Enterprise, Government and Consumer Electronics

HOOFDDORP, THE NETHERLANDS--(Marketwire - December 4, 2007) - Irdeto, the proven expert in content security for digital TV, IPTV and mobile and a subsidiary of multinational media group Naspers (JSE: NPN), announced today that it has acquired 100 percent of Cloakware, a privately held software company based in Vienna, Virginia, USA and Ottawa, Ontario, Canada.

"Through a partnership our two companies initially formed in 2003, we have personal experience with the high quality of Cloakware's products and people," stated 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."

Irdeto has an unparalleled history and core competency in content security. Historically, Irdeto's security solutions always resided on secure hardware platforms like smart card chips. As the industry matured and consumer content use evolved, the company also developed software-only solutions for IPTV, mobile TV and mobile DRM. Cloakware's technology, which makes security inseparable from the software it protects, adds an additional layer of protection to Irdeto's already solid security offering. The acquisition of Cloakware furthers Irdeto's agenda to deliver end-to-end security offerings and a broad portfolio of security solutions covering multiple markets and a wide range of devices. With Cloakware in the Irdeto group of companies, this strategic addition will add enterprise, government and consumer electronics solutions to the company's product offerings as well.

Cloakware's software solutions protect more than one billion applications and the assets of some of the world's largest, most recognizable and technologically advanced companies. Customers include Texas Instruments, Pioneer Electronics, NXP (founded by Philips), State Street, and Vodafone, representing enterprise, government, content distributors and manufacturers of consumer electronics, mobile devices, PCs and software. Irdeto and Cloakware's long-standing partnership includes solutions to prevent piracy and subscription fraud in digital video and IP networks. Cloakware's previous shareholders included significant venture capital funds and industry experts Fairhaven Capital, Globespan Capital Partners, and Intel Capital.

"Content is going digital and becoming ubiquitous -- on mobile devices, on PCs, throughout the home and office -- which is driving the need for sophisticated and flexible security solutions," said Paul Ciriello, managing general partner, Fairhaven Capital, and previous chairman of the Cloakware board of directors. "Emerging business models are only as good as their security. Countless security failures have been reported in recent years, including those involving consumer electronics devices, broadcasting, the Internet, retail, banking and government. With Irdeto's acquisition of Cloakware, the combination of the two companies creates substantially stronger solutions for the protection of digital assets."

Cloakware's full line of security products and services includes:

--  Cloakware Security Suite - A collection of automated tools that enable
    developers to protect their application code against reverse engineering,
    tampering attacks, and automated attacks.
--  Cloakware Robustness Solutions - Hardens Digital Rights Management
    (DRM) and Conditional Access (CA) systems to meet content protection
    standards (such as OMA DRM, DTCP-IP and WMDRM), reducing development costs
    and speeding time-to-market.
--  Cloakware Server Password Manager (CSPM) - Proven enterprise solution
    for managing privileged and application-to-application (A2A) passwords.
    Enables data centers to increase security, eliminate downtime, improve
    efficiency and comply with regulatory requirements.

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

"As an early investor and collaborator with Cloakware, we see the company's acquisition by Irdeto as an opportunity for it to expand its innovative technology to a worldwide customer base," said Sean Cunningham, investment director, Intel Capital. "Irdeto will, in turn, benefit from Cloakware's innovative security solutions that reach across a variety of market segments."

About Irdeto

Irdeto, the proven expert in content security, provides comprehensive solutions for content protection in digital TV, IPTV and mobile environments. Irdeto is a subsidiary of multinational media group Naspers (JSE: NPN). The company's support, sales and R&D offices are located worldwide with corporate headquarters near Amsterdam, the Netherlands, and Beijing, China. Irdeto offers both hardware- and software-based solutions. The company works with an impressive list of leading industry partners to create end-to-end solutions for any pay media business. Irdeto's goal is to help operators increase content revenue by offering best-of-class security solutions supporting a wide range of revenue models. With nearly 40 years of providing encryption technology and proven success in deploying security solutions across the globe, Irdeto continues to offer innovative products to more than 300 customers around the world. For further information on the company, please visit

About Cloakware

Cloakware is the security solutions provider that makes security inseparable from the software it protects. From applications and databases deep inside corporations, to consumer devices like music players, to military weapon systems, more and more software applications need to protect themselves from unauthorized user access and tampering. Only Cloakware's patented, layered, and compliance-driven approach to software self-protection delivers the trusted environment that the government, enterprise, and consumer markets require. As a result, Cloakware's software security solutions protect more than one billion shipped applications and the assets of some of the world's largest, most recognizable and technologically advanced companies. The company is headquartered in Vienna, Va., has offices in Ottawa, Canada and the UK, and regional sales offices throughout the US. For more information, please go to

Contact Information

  • For additional information, please contact:

    Susan Brown
    Marketing Communications Manager
    +31 023 556 2218
    Email Contact

    VisiTech Public Relations for Irdeto
    Gabe Boeckman
    +1 303-752-3552 x260
    Email Contact

    Schwartz Communications for Cloakware
    Avi Dines
    +1 781-684-0770
    Email Contact

    Heather MacIntosh
    Senior Director, Corporate Marketing
    +1 613-271-9446 x227
    Email Contact