VASCO Data Security International, Inc. (VDSI) said Monday that it has acquired Cambridge, UK-based Cronto, a provider of secure visual transaction authentication solutions for online banking, for an initial cash consideration of Euro 15 million and contingent cash consideration in the form of an earn-out of up to a maximum of Euro 2 million.
Cronto was founded in 2005 as a University of Cambridge spin-out and is the market leader in the field of secure visual transaction authentication and signature solutions for online banking applications. The CrontoSign solution, also known as photoTAN, has been chosen to secure transactions of customers of leading German and Swiss banks such as Commerzbank AG and Raiffeisen Switzerland.
The acquisition was financed from VASCO's existing cash balances. The acquisition is expected to be dilutive in 2013, due in large part to the amortization of purchased intangible assets. The acquisition is expected to be accretive in 2014.
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