AEP Systems Merges With Netilla Networks To Become A Market Leader In High-Security Networking And Application Access Management
London, UK and Somerset, N.J. — Dec. 22, 2004 — AEP Systems (AEP), the high-speed security company, and Netilla Networks Inc. (Netilla), a leading provider of simple, secure application access solutions, today announced the completion of a merger to form AEP Networks. The companies also announced an additional funding round of $5 million from existing investors.
AEP NETWORKS
The new entity, AEP Networks, immediately becomes a formidable global player in the enterprise IT marketplace by combining two complementary product ranges to provide a full spectrum of secure networking solutions. It will provide best-of-breed high-security IPSec-based VPN solutions, SSL VPN and secure application access management products to address the security needs of companies within both the public and commercial markets. AEP Networks’ solutions will enable both secure remote access as well as internal (site-to-site) communications.
The company is poised to increase its market penetration benefiting from cross-selling opportunities into a combined customer base worldwide. In addition, AEP Networks will leverage its collective network of channel partners, value added resellers and systems integrators across the United States, Europe and Asia.
MANAGEMENT TEAM
Pat Donnellan, Chief Executive Officer of AEP Systems, will now become CEO of AEP Networks. Reggie Best, President and CEO of Netilla Networks, will become Executive Vice President, Marketing and Secure Application Access Business Unit. Other members of the executive management team include Rob Lane (VP Product Management and Engineering, AEP Systems) who will become Executive Vice President, Secure Networking Business Unit, and Chris Meehan (Chief Financial Officer, AEP Systems) who will become CFO.
AEP Networks starts with a base of more than 1,200 enterprise customers around the world, with a concentration in healthcare, public sector and financial services markets. Corporate headquarters will be Somerset, N.J., with European headquarters in London, supported by sales offices in Brussels and Hong Kong.
“Our mission is to be the market leader in high-security networking and application access solutions for both the enterprise and public sector,” said Donnellan. “The merger positions us for expansion into new geographic and vertical markets with a full suite of secure networking solutions.”
“The merger provides us with the scale and resources to keep ahead of the marketplace,” said Best. “Customers increasingly demand a portfolio of solutions rather than point products. By combining Netilla’s unique SSL VPN technology with AEP’s highly secure IPSec-based solutions, AEP Networks enables us to provide tailored solutions to meet customer needs.”
INVESTMENT OF $5 MILLION IN AEP NETWORKS
Existing investors in AEP Systems and Netilla are funding the new $5 million financing round. AEP’s lead investors include ACT Venture Capital and b-business partners. Netilla’s lead investor is Ascend Venture Group; also participating are Early Stage Enterprises, Masthead Venture Partners, Mid-Atlantic Venture Funds and NJTC Venture Fund.
“AEP Networks brings together a superior product portfolio, a skilled workforce and a combined customer and channel base that will provide a platform for the company to achieve a leadership position in secure networking and application access management,” said Lennart Johansson, Managing Director, b-business partners.
“This investment reflects our confidence in the AEP Networks management team. The merger strengthens their global presence and will have a significant positive impact on revenues,” said Dan Maher, Head of Technology Strategy, ACT Venture Capital.
“As investors, we believe that secure networking and application access management is one of the most exciting growth sectors in technology,” said Charles W. Crockett, Founding Partner of Ascend Venture Group. “AEP Networks has unmatched credentials and resources to anticipate and deliver the solutions that the market demands”.
AEP Networks will be launched in the first quarter of 2005, when the company will provide further details on its product strategy.
ABOUT AEP SYSTEMS
AEP Systems, the Irish high-speed security company, delivers hardware security and acceleration solutions that are fast and cost-effective to deploy. AEP Systems offers a full line of hardware security products including SSL VPNs, hardware security modules, high-security VPN encryptors and SSL acceleration hardware.
AEP’s flagship products are:
” SureWare Net, which is designed to meet the most strict and secure remote access and encryption needs of public sector agencies ” SureWare Keyper, a hardware security module for protected key storage ” SureWare A-Gate, an SSL VPN remote access appliance.
Customers include financial institutions, government bodies, healthcare organizations and OEMs. Founded in Dublin in 1998, AEP Systems is privately held with offices in the US, Europe and Asia-Pacific.
ABOUT NETILLA NETWORKS
Netilla Networks, Inc. is a leader in secure application access solutions that are designed to provide simplicity, ease of use and access to the broadest spectrum of network-based applications.
The company’s key products are:
” The Netilla Security Platform (NSP) suite of SSL VPN solutions, which provides the broadest range of secure remote application access – including legacy, client/server and Web-based applications. ” The Netilla Secure Gateway Appliance (SGA) line of application-specific SSL VPN solutions designed for small to midsize businesses and corporate departments. The initial model, SGA-C, provides simple, secure access to Citrix MetaFrame applications.
Netilla’s customer base focuses on the healthcare, financial services and governmental sectors. Netilla was founded in 1999 and markets its products in North America, Europe and Asia.