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Technology / AI and automation

CYLINK SHARES SOAR AS IT BUYS ISRAELI DATA SECURITY COMPANY

Network security software company Cylink Corp has seen its shares soar as it splashed out $82.7m to acquire Israeli data security and smart card company Algorithmic Research Ltd. The purchase will enable Cylink, shares in which hit a 52-week high of $15.9 this week, to expand its network security range of products with physical security devices, and to boost its sales and distribution networks. Algorithmic Research, which has subsidiary operations in Germany, the UK and Singapore, will continue to operate from its headquarters in Givat Shmuel, Israel and will trade as a wholly-owned subsidiary of Cylink. The purchase will consist of $44m in cash and $38.7m in Cylink shares. Sunnyvale, California-based Cylink recently struck marketing agreements with both Microsoft Corp and Sun Microsystems Inc (CI No 3,240). Microsoft will use the company’s cryptographic software in its forthcoming release of Internet Explorer and NT 5.0, while Sun will include Cylink X.509 certificate technology in the next version of the Java development Kit. Algorithmic is currently in negations with the Israeli and Singapore governments, and hopes to supply them with smart cards to be used as identity cards throughout both countries.

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