Nexus strengthens its position within e-Security by acquiring ArmourSoft Ltd

By acquiring ArmourSoft, Nexus strengthens its competitive edge within e-Security and addresses customers’ demanding requirements for information security.

ArmourSoft provides a unique and competitive software platform for crucial security needs such as secure access and encryption. These facilities combined with Nexus high-end products within Digital ID, will meet the ever widening demand for solutions within the area of information security. The acquisition supports the Nexus strategy for growth; developing partnership opportunities and meeting the predicted market growth in Europe. ”The acquisition of ArmourSoft is strategically important to Nexus. The information society of today stipulates more openness, availability and speed in the flow of information, whilst data volume continues to increase. To meet the demand for increased levels of information security in global organizations, Nexus is broadening its product portfolio by acquiring ArmourSoft”, says Christina Detlefsen, CEO Technology Nexus AB. ArmourSoft is a small privately held company that has been concentrating on product development. Today, ArmourSoft offers a software platform including security applications for password management, secure access, file and folder encryption and secure e-mail. Initially the acquisition will have a negative impact on operating profits although it is anticipated to provide a positive effect on the results for the full year of 2006. The agreement between the parties is for Nexus to acquire 100 percent of the share capital in ArmourSoft Ltd. The base payment is equal to 2 089 020 Nexus shares. Provided that the turnover of ArmourSoft products in 2006 and 2007 exceeds specific targets there is an additional potential payment of a maximum 4 178 040 Nexus shares. The acquisition is subject to an extra general shareholders meeting of Nexus on the 30th of January 2006.