Arcot Systems Secures $11.0 Million From Investors; New Investors Adobe Ventures and INVESCO Private Capital Join Funding Round Earmarked for Accelerated Deployment of Online Authentication and Identity Management Solutions.SUNNYVALE, Calif. -- Arcot Systems, Inc. (Arcot) a leading provider of online authentication and identity management solutions, announced the closing of an $11.0 million Series A Prime round of funding, including new investment by Adobe Ventures and INVESCO Private Capital. Prior investors in the company, Accel Partners, Goldman Sachs The Goldman Sachs Group, Inc., or simply Goldman Sachs (NYSE: GS) is one of the world's largest global investment banks. Goldman Sachs was founded in 1869, and is headquartered in the Lower Manhattan area of New York City at 85 Broad Street. , Onset Ventures, Raza Ventures, Skandinaviska Enskilda Banken SEB or Skandinaviska Enskilda Banken AB, is a North-European financial group for corporate customers, institutions and private individuals. Its activities comprise mainly banking services, but SEB also carries out significant life insurance operations. (SEB Noun 1. SEB - a form of staphylococcal enterotoxin that has been used as an incapacitating agent in biological warfare staphylococcal enterotoxin B ), and Wachovia Strategic Ventures also participated in the round. Arcot will use the funding to accelerate deployment of its identity management and authentication software solutions worldwide, focusing on financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. , pharmaceutical, and consumer portal requirements. Arcot's solutions suite includes payment authentication, user authentication See authentication. , and digital signature verification platforms used by over 15,000 credit/debit card issuers, merchants and enterprises in the U.S., Canada, the European Community European Community: see European Union. European Community (EC) Organization formed in 1967 with the merger of the European Economic Community, European Coal and Steel Community, and European Atomic Energy Community. , and throughout the Asia-Pacific region. In connection with the financing, Chris McKay of Granite Ventures Granite Ventures is a private venture capital firm with offices in San Francisco California. It has backed such companies as Tumbleweed Communications, Plumtree Software, Sendmail, and Westbridge Technology. , the General Partner of Adobe Ventures, will join Arcot's Board of Directors. "There is a great opportunity to ease marketplace pain associated with implementing document processes that require strong authentication. The portable document format (file format) Portable Document Format - (PDF) The native file format for Adobe Systems' Acrobat. PDF is the file format for representing documents in a manner that is independent of the original application software, hardware, and operating system used to create those documents. (PDF (Portable Document Format) The de facto standard for document publishing from Adobe. On the Web, there are countless brochures, data sheets, white papers and technical manuals in the PDF format. ) pioneered by Adobe Systems Incorporated (which supports Adobe Ventures) is increasingly being adopted in these high-value business processes to ensure integrity in the information exchanged. Arcot's solutions allow customers to easily manage the identity of those involved in the process. We look forward to greater collaboration between Adobe and Arcot to further enable these types of solutions," said John Landwehr, Director of Security Solutions and Strategy, Intelligent Documents business unit at Adobe. "We welcome Adobe Ventures' vote of confidence during this exciting phase of the company's growth. Their investment in Arcot, along with INVESCO's and that of our existing investors, will enable us to more rapidly expand deployments of our authentication software solutions worldwide," said Ram Varadarajan, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Arcot. "While we are generating positive cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses , this round of financing will enable us to accelerate our growth multi-fold." Mr. Varadarajan continued, "We are already a major player in the online identity management and authentication space and Arcot is ready to help protect the identities and transactions of millions of more consumers. Our unique two-factor camouflage encryption solution is the most sustainable way to secure an organization's resources and thwart many types of security threats, such as identity theft and phishing attacks. And as important, Arcot provides robust enterprise-strength authentication software that is quickly deployed, compatible with existing legacy systems, and flexible enough to work well within evolving PKI (Public Key Infrastructure) A framework for creating a secure method for exchanging information based on public key cryptography. The foundation of a PKI is the certificate authority (CA), which issues digital certificates that authenticate the identity of architectures." About Adobe Ventures Adobe Ventures is a targeted venture capital fund supported by Adobe Systems Incorporated, the world's leading provider of software solutions to create, manage and deliver high-impact, reliable digital content. Since 1994, Adobe Ventures has supported innovative companies that are strategic to Adobe's business through a proven funding model leveraging its operational and investing expertise. About Arcot Systems Arcot is a leading provider of secure e-payment, digital signature, identity management, and authentication software solutions for financial services, bio-pharmaceutical, and other security-conscious enterprises. The company offers a suite of easily deployed, cost-effective, and scalable software-based solutions that provide powerful "two factor" protection to limit online transaction fraud. Arcot's patented camouflage technology creates a virtual software "smart card" -- the Arcot ID(TM) -- that is transparent to the user as it verifies a person's identity and allows for the digital signing of transactions and documents. Unlike other PKI (public key infrastructure) authentication providers that require users to carry physical keys/cards that can be lost or stolen, or employ digital certificates that sit vulnerable on a user's computer, Arcot's solution secures protection for private keys on the desktop, thus providing the strength of PKI with the convenience and simplicity of passwords. Whether used as a robust standalone solution or in tandem with extranet access and single sign-on systems, the company's products meet the business need for strong transactional security while providing the customer with a seamless, user-friendly experience. Arcot's offerings are compliant with industry standards including 3-D Secure, Identrus, and SAFE (Secure Access for Everyone). Organizations also work with Arcot to meet compliance with legislative requirements such as Sarbanes-Oxley and HIPAA (Health Insurance Portability & Accountability Act of 1996, Public Law 104-191) Also known as the "Kennedy-Kassebaum Act," this U.S. law protects employees' health insurance coverage when they change or lose their jobs (Title I) and provides standards for patient health, . Arcot is a private company headquartered in California's Silicon Valley, with offices in the United Kingdom, Germany, and India. For more information visit www.arcot.com. |
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