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Philips to transfer its CryptoWorks Conditional Access activities to Irdeto

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BANGALORE: Royal Philips Electronics and Amsterdam headquartered Irdeto, a player in content security and a subsidiary of multinational media group Naspers announced that they have reached a preliminary agreement on the terms of the transfer of Philips' conditional access (CryptoTec) business unit to Irdeto. No financial details of the transaction were disclosed.

Philips' CryptoTec business unit develops and sells content protection (more generally known as "conditional access") products such as advanced security systems for cable, satellite, terrestrial and IP networks under the name 'CryptoWorks'. In addition to conditional access for digital TV, Irdeto also offers software-based content security for IPTV services as well as multiple DRM and conditional access products for premium mobile content and mobile TV (DMB and DVB-H).

Says Philips Digital Networks CEO Hans Streng: "The conditional access industry is moving towards consolidation, and Philips has been looking into various options for the CryptoTec business. Reaching this agreement with Irdeto is considered to be the solution that offers the best future-proof direction for customers and staff. CryptoTec will thus find a new home where conditional access is the absolute core of the business. Philips will continue focusing on promoting open-standards DRM."

"With the acquisition of Philips' CryptoTec, Irdeto will strengthen its position in the pay media industry, and will now have over 300 customers on six continents. Customers using CryptoWorks will continue to be fully supported and in addition to this can now also benefit from a broader choice of content security solutions," says Irdeto CEO Graham Kill.

The acquisition will also enable Irdeto to further strengthen its position in China, where it currently already plays a market-leading role in securing China's digital television migration, with nearly 50 customers in that country.

Philips CryptoTec employees will transfer to Irdeto when the transaction is completed, which is expected within the next months, subject to customary regulatory clearances and procedures.

Irdeto is one of the leaders in content security, and provides comprehensive solutions for digital content protection in Digital TV, IPTV and Mobile environments. The company's support, sales and R&D offices are located worldwide with corporate headquarters near Amsterdam, the Netherlands. Irdeto offers both hardware and software based solutions.

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