Aladdin Knowledge Systems

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Aladdin Knowledge Systems Ltd.
Type Private
Industry Security Software & Services
Fate Acquired by SafeNet
Founded 1985
Founder(s) Jacob (Yanki) Margalit and Tzvi Popowski
Headquarters Belcamp, MD, USA
Products eToken, eSafe, Hardlock, HASP
Revenue Increase US$ 105.9 million (2007)
Operating income Increase $ 13.911 million (2007)
Net income Increase $ 14.888 million (2007)
Employees 464[1]
Website www.safenet-inc.com

Aladdin Knowledge Systems (formerly NASDAQALDN and TASEALDN) was a company that produced software for digital rights management and Internet security. The company was acquired by Safenet Inc, in 2009. Its corporate headquarters are located in Belcamp. MD.

History[edit]

Aladdin Knowledge Systems was founded in 1985 by Jacob (Yanki) Margalit, when he was 23 years old; he was soon joined by brother Dany Margalit, who took the responsibility for product development at the age of 18, while at the same time completing a Mathematics and Computer Science degree in Tel Aviv University. In its early years the company developed two product lines, an artificial intelligence package (which was dropped early on) and a hardware product to prevent unauthorized software copying, similar to digital rights management. Yanki raised just $10,000 as an initial capital for the company.[2]

The digital rights management product became a success and by 1993 generated sales of $4,000,000. The same year that company had an initial public offering on NASDAQ raising $7,900,000.[3] In 2004 the company's shares were also listed on the Tel Aviv Stock Exchange.[4] By 2007 the company's annual revenues reached over $105 million.

In mid-2008, Vector Capital was attempting to purchase Aladdin. Vector initially offered $14.50 per share, but Aladdin's founder Margalit refused the offer arguing that the company was worth more. Aladdin's shareholders agreed on the merger in February 2009 at $11.50 per share, in cash. In March 2009, Vector Capital acquired Aladdin and officially merged it with SafeNet.[5]

Corporate timeline[1][edit]

  • 1985 - Aladdin Knowledge Systems was established
  • 1993 - Aladdin held an Initial Public Offering
  • 1996 - Aladdin acquired the German company FAST
  • 1998 - Aladdin patented USB smart card based authentication tokens
  • 1998_Dec - Aladdin acquired the software protection business of EliaShim
  • 1999 - Aladdin acquired the eSafe "content security" business of EliaShim
  • 2000 - Aladdin acquired 10% of Comsec
  • 2001 - Aladdin acquired the ESD assets of Preview Systems
  • 2005 - Aladdin completed second offering - 2,000,000 shares with net proceeds of $39m
  • 2009 - Aladdin was acquired by Vector Capital and merged with Vector's SafeNet.

Products[edit]

DRM[edit]

Aladdin's HASP product line is a digital rights management (DRM) suite of protection and licensing software with 40% global market share, used by over 30,000 software publishers. It is used across many platforms (Windows, Linux, Mac).[6]

HASP, which stands for Hardware Against Software Piracy, was the company's first product and evolved into a complete digital rights management suite, that includes a software only option and a back office management application, in recent years also software as a service capability.

Internet security[edit]

In the late 1990s the company started diversifying and began offering Internet security and Network security products, offering two product lines:

Digital identity management[edit]

Six models of eTokens

eToken, portable device for two-factor authentication, pasdigital identity management, mainly deployed as a USB token.

Network security[edit]

eSafe a line of integrated network security and content filtering products, protecting networks against malicious, inappropriate and non-productive Internet-borne content.

Vbox[edit]

Used by Adobe and Macromedia in their 30-days product trials.

See also[edit]

References[edit]

  1. ^ a b Company Profile for Aladdin Knowledge Systems Ltd (ALDN), retrieved 2008-10-20 
  2. ^ Shohet, Dan, "Aladdin's Yanki Margalit: It's not personal", Globes 15 - 09 -2008, retrieved 2009-11-16 
  3. ^ "Aladdin completes flotation. (Aladdin Knowledge Systems finishes initial public offering on NASDAQ)", Israel Business Today Article date: October 29, 1993 
  4. ^ "Aladdin Knowledge Systems to Dual-List on Tel Aviv Stock Exchange.", PR Newswire Article date: July 22, 2004 
  5. ^ Shuster, Shmuel (March 2009), Vector completes Aladdin takeover. 
  6. ^ Miller, Zack (March 12, 2008), "March Stock of the Month: Aladdin Knowledge Systems (ALDN)", Israel Opportunity Investor 

External links[edit]