Dallas-based Entrust a provider of enhanced Internet security solutions and services, and SECOM Co are among the owners of Entrust Japan, which will integrate with enCommerce Japan, an Internet security and portal management solution, in a new joint venture. The new venture will retain the name Entrust Japan. Importantly, Entrust will invest an additional US$2.8 million and SECOM Co. Ltd. will invest an additional US$1.8 million to give them majority ownership in the company.
The joint venture – which integrates physical and electronic security – is expected to generate new business synergies for the two companies internationally. Additionally, the agreement will give Entrust and SECOM shared partnership and leadership in the company.
Its chief objective is to accelerate business development in Japan, and strengthen Internet security transactions for customers, which include government and corporations serving the financial, healthcare and other industries.
With strong foundations in the global security business, SECOM is diversifying its operations into other fields such as medical care, educational and information services, non-life insurance, real estate development, cyber security and geographic information system (GIS) services.
Currently SECOM wholly-owns security related subsidiaries in the United States, Republic of Korea, Taiwan, Thailand, Malaysia, the United Kingdom, Singapore, Australia, People’s Republic of China and Indonesia.
Existing shareholders in the new company include: NTT Data Corporation; Sony Corporation [Nasdaq: SNE]; Orix Corp. [NYSE: IX]; The Bank of Tokyo-Mitsubishi, Ltd. [NYSE: BMT]; The Sanwa Bank, Limited; The Tokai Bank, Limited; SumitomoMitsui Banking Co.; The Fuji Bank, Ltd.; Nippon Life Insurance Co.; The Meiji Mutual Life Insurance Co.; Sumitomo Life Insurance Co.; and, others.
Under the agreement, the newly structured Entrust Japan will continue to serve as the exclusive distributor in Japan of Entrust’s market-leading, enhanced Internet security software, which provides identification, verification, entitlements, privacy, and security management for high-value and mission-critical transactions over the Internet and within communications networks. Entrust Japan’s enhanced Internet security solutions are designed to provide privacy and security in Internet transactions, and prevent hackers and other intruders from breaking into networks, stealing corporate documents or government records.
Secom and Entrust will jointly manage the new company. Secom will appoint the chairman and chief executive officer, while Entrust will appoint the president and chief operating officer. Entrust also will provide additional technical resources for market development and support, the companies said.
This is a very strong and strategic partnership that will enable Entrust Japan to move at full-speed to develop the enhanced Internet security market in Japan, said Yoichi Tao, president, Entrust Japan. The world is changing quickly, and, as more high-value, mission-critical transactions are moving online, especially among government and business entities, the demand for enhanced Internet security has never been greater.
Industry research firm IDC has predicted Asia-Pacific will be one of the fastest growing markets for information security services over the next five years. IDC predicts the market worldwide will grow from $6.7 billion last year to around $21 billion by 2005, representing a compound growth rate of 25.5 percent. In Asia-Pacific, the rate will be 29.8 percent.
Entrust President and Chief Executive Officer Bill Conner, in Tokyo for the announcement, said enhanced Internet security must become part of the Internet’s DNA for government, commerce and countrywide security, over both wired and wireless devices.
We’ve had tremendous success in Japan, and today’s announcement greatly strengthens our participation and investment in this key market, said Conner. In working with SECOM and our other partners in Entrust Japan, we want to ensure that the security of online transactions is as safe, private and reliable as the high-performance Internet.
