RSA Security Expands Reach In OnlineSecurity Market
BEDFORD, Mass. - (04/25/06) -- RSA Security said Monday it hasagreed to acquire privately held PassMark Security for $44.7million in cash and stock, in a move to broaden its reach in theonline banking authentication and fraud detection market. Thepurchase price includes $9 million in cash and 2 million in shares.The deal comes less than four months after RSA acquired Cyota,another major player in the online security market and as creditunions and banks are faced with a year-end requirement to implementtwo-factor authentication for online transactions. PassMark, basedin Menlo Park, California, is best known for its two-factorauthentication product that validates each user to a web site in atwo-step process. Users cant simply offer their passwordwhile logging in, but must also pick some visual images, orparticipate in a voice-based biometric system that assures onlylegitimate users are allowed access. PassMark was founded in 2004and was backed by venture funds Diamondhead ventures and MenloVentures.