Baltimore Technologies Takes Stake in Japanese Firm

E-security solution provider Baltimore Technologies plc
has taken a 72.5 per cent stake in its Japanese reseller, NSJ Corp.

In a creative deal, Baltimore has agreed to pay 2.67 billion yen
($24.9 million) for the stake, while NSJ will pay Baltimore 2.4 billion
yen ($22.4 million) to extend its license to distribute Baltimore
products for another twelve years.

In other words, Baltimore — which this week was promoted to the
FTSE 100 Index, ousting many larger and more profitable companies —
will pay just 267 million yen ($2.5 million) out of its cash resources.

From now on, the Japanese company will be called Baltimore Technologies
Japan KK.

Fran Rooney, chief executive officer of Baltimore Technologies, said
the acquisition was a strategic step for the company in Japan.

“Japan is rapidly adopting e-business and e-commerce and we believe
that this deal is good value and is very well timed to capitalize
on the Japanese Internet and mobile commerce growth opportunities,”
said Rooney.

Privately owned before the Baltimore takeover, NSJ has been selling
Baltimore’s PKI systems, cryptographic toolkits and security solutions
since becoming a partner in June 1998. Its clients include many top
names in Japanese industry, such as Sony, Fuji, NEC and NTT Data.

NSJ’s revenues for the year ended April 30 were 800 million yen
($7.5 million), with profit before tax being 37 million yen ($0.4 million).

NSJ’s fifty employees in Tokyo will now be joined by Baltimore
Technologies’ existing employees as Baltimore integrates the operations
of the two companies.

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