Smart card and software security company Aladdin Knowledge Systems Ltd is buying the assets of fellow Israeli software house, EliaShim Ltd and its eSafe Technologies Inc subsidiary. eSafe markets a suite of internet security products – an area which Aladdin has been looking to enter for some time. The new acquisition will form the core of Aladdin’s new Internet Security Unit. Under terms of the deal, Aladdin will issue 1.24 million common shares and hand over an additional $6.5m in cash. The company said additional amounts not exceeding $5m may become payable based on eSafe’s revenue performance in 1999. That brings the total possible value of the deal to $22.8m, based on Monday’s $9.125 closing price for Aladdin. eSafe expects sales of roughly $5m in 1998. Aladdin expects to take an undisclosed one-time acquisition charge during the fourth quarter.
