Just stumbled upon this...|
27 June 2000
SONERA ACQUIRES iD2 TECHNOLOGIES TO SMARTTRUST BY EMITTING NEW SHARES
SONERA CORPORATION STOCK EXCHANGE RELEASE 1 (3) JUNE 27, 2000 10.50 a.m.
Sonera SmartTrust combines forces with iD2 to strengthen its position as a leading provider of integrated solutions for secure wireless e-commerce Sonera Corporation (HEX: SRA, Nasdaq: SNRA) has today signed and closed an agreement to acquire full ownership of the iD2 Group. The major shareholders of iD2 Holding AB are Schroder Ventures, Ericsson, Cisco, Reuters and SAP. Sonera will issue shares of Sonera as consideration. Sonera Corporation will transfer the ownership of iD2 Holding AB to its wholly-owned subsidiary Sonera SmartTrust Ltd. Sonera intends to float Sonera SmartTrust within next ten months.
The exchange ratio used in the transaction is 0.05546 Sonera shares for each fully diluted iD2 Holding AB share. Sonera will issue 4,802,431 new shares in consideration for 86,592,295 fully diluted shares in iD2 Holding AB. As a result of this, the Sonera share capital will amount to about ? 319.7 million (317.7) and total number of Sonera's share will increase to 743,534,486 from 738,732,055. After the increase of the share capital, the holding of the Finnish State in Sonera will fall to 52.9% from 53.3%. Sonera intends to record the transaction in accordance with the interpretation by the Finnish Accounting Board, under which no goodwill will be created.
iD2, headquartered in Sweden, offers software for secure digital identification solutions on the Internet based on PKI (Public Key Infrastructure) and smart card technology. It offers scalable PKI products suited to large-scale implementation for financial institutions, government, telecommunications operators and Trusted Third Parties. The company employs 95 people. iD2 has a broad customer base of 150+ companies (including D-Trust, Identrus member banks, MeritaNordbanken, Telia, Finnish Population Register Centre) and a range of significant solution partners (including Cisco, Compaq, Computer Associates, Bull, Microsoft, Racal Security, Siemens).
Sonera SmartTrust develops and provides enabling solutions for wireless e-commerce. Together with its partners Sonera SmartTrust offers a complete solution consisting of security components and service platforms for wireless operators and service providers. Sonera SmartTrust's key customers and partners include a number of leading wireless operators (e.g. BT Cellnet, France Telecom, Telenor, Singapore Telecom, New World Mobility), corporate customers (e.g. Mastercard, Thomas Cook, eQ Online), systems integrators (e.g. HP, Tietoenator), and certification authority solution providers (e.g. Baltimore, Entrust, Verisign).
Today's transaction is a natural continuation to Sonera SmartTrust's growth strategy and the existing co-operation between the two companies. The acquisition will allow Sonera SmartTrust to pursue new revenue opportunities by adding the iD2 product range of secure identification software including a certification management platform to its offering. With an integrated offering Sonera SmartTrust enables wireless operators and corporate customers to rapidly deploy Public Key Infrastructure to support their wireless e-commerce strategies. The iD2 product line will be further developed by Sonera SmartTrust. The management and employees of iD2 are key to the transaction and are expected to continue as Sonera SmartTrust employees. They will be incentivised through participation in an incentive scheme.
'Sonera SmartTrust is an international forerunner in secure wireless e-commerce. iD2 strengthens Sonera SmartTrust's strategic focus in secure identification solutions for wireless e-commerce through its product range, customers, partners and personnel', says Kaj-Erik Relander, Deputy CEO of Sonera Corporation.
'Sonera SmartTrust and iD2 together will be favourably positioned to accelerate the development of the wireless e-commerce market with an integrated offering for wireless operators, corporations and certification authorities. iD2's expertise in PKI enabling software products allows Sonera SmartTrust to become a leading supplier of comprehensive solutions for secure wireless e-commerce. iD2's products can also be deployed in conjunction with solutions of other suppliers, which will allow Sonera SmartTrust to continue its commitment to collaborate with leading certification platform vendors. We make secure wireless e-commerce a reality today', say Harri Vatanen, CEO and President of Sonera SmartTrust and Bjorn Gustavsson, CEO of iD2.
Earlier this year, in April, Sonera SmartTrust joined forces with Swedish Across Wireless AB. Across Wireless offers large selection of wireless Internet-based service platforms, e.g. over-the-air (OTA) service and device management, wireless Internet gateway platform as well as a SIM-based WAP browser. Sonera SmartTrust and Across Wireless together provide a comprehensive range of open standard solutions for secure wireless e-commerce for both wireless operators and service providers. iD2 adds the new PKI products to Sonera SmartTrust's portfolio and further strengthens Sonera SmartTrust's leading position in smartcard-based security solutions for wireless commerce.
'Sonera SmartTrust has, through the acquisition of iD2 and Across Wireless created a leading technology platform on which to build its m-commerce business. Cisco looks forward to extending its current relationships with iD2 and Across Wireless under the new Sonera SmartTrust structure', says Mike Volpi, Chief Strategy Officer for Cisco Systems Inc.
Executive Vice President
Corporate Communications & IR
For further information, please contact:
Harri Vatanen, President and CEO,
Sonera SmartTrust Ltd
Tel. + 358 2040 3300
Bjorn Gustavsson, CEO,
iD2 Tel. +46 8 775 5200
Companies on the Internet:
DISTRIBUTION: HEX Helsinki Exchanges Major media