Spyglass Inc is to sell off its SurfWatch web filtering software off to JSB Software Technologies Plc for $29m. JSB will combine the product with its own surfControl division, founded in 1996, and has taken out a license to Spyglass’ web filtering technology for a minimum of $2m. Spyglass retains control of the patent, which was issued in March 1999.
Back in April, JSB acquired Kansmen Corp for its LittleBrother internet filtering software. And earlier this week it said it would integrate Autonomy Plc’s adaptive probabilistic concept modeling technology into SurfControl, for analyzing web content. JSB says it plans to be the number one provider of internet access software. Others in the market include Israeli company Elron Software and privately-held US company Net Partners Inc. JSB’s more traditional business comes from its MultiView Windows to Unix connectivity software. It is a UK company with offices in Scotts Valley, California.
Naperville, Illinois-based Spyglass, which says the sale will enable it to concentrate on the information appliance, interactive television and wireless data services market, gets $17m in cash and $12m in JSB equity securities. The deal is expected to close in mid-November, at the same time as JSB’s anticipated public offering of equity securities on the Easdaq stock market. Closing is subject to the completion of the equity offering by JSB, at which JSB hopes to raise some $50m.
Spyglass, which originally acquired the SurfWatch technology from Los Altos, California-based SurfWatch Software Inc for $12.6m back in May 1996, will continue to resell Surfwatch to customers in the interactive television market. Its existing agreements include Microsoft Corp’s WebTV, Comcast Corp, Worldgate, Excite@Home, American Interactive Media and NTL.
