Vasco, a software security company, has announced its acquisition of Cronto, in exchange for an initial cash consideration of $19.3 million (€15 million) and contingent cash consideration in the form of an earn-out of up to a possible $2.6 million (€2 million).
Founded in 2005, Cronto is a provider of visual transaction authentication and signature solutions for online banking. Cronto’s patented product, CrontoSign, is popular among German and Swiss banks looking for a solution to secure online banking transactions. The technology is user friendly and effective against attacks by Trojan malware by allowing the bank to establish secure optical communication channels with account holders. Clients simply scan a CrontoSign image from the bank website to verify the transaction details.
"The acquisition of Cronto is a strong example of Vasco investing in its future growth," states T. Kendall Hunt , Vasco's Chairman and CEO. "Through our make-or-buy strategy for new technologies, we will keep scanning the market for suitable companies to join Vasco.”
Vasco intends to offer this technology to the global banking market, and anticipates integrating CrontoSign into other product platforms. Vasco expects that the acquisition of Cronto to contribute to Vasco’s future growth and the development of new technologies.
Igor Drokov, CEO and co-founder of Cronto added "Joining forces with Vasco will allow us to leverage their leading position in the global authentication & security market bringing this and future products to new customers and new applications worldwide."