VASCO Data Security International plans to acquire privately held Silanis Technology.
Silanis provides electronic signature (e-signature) and digital transaction solutions used to sign, send and manage documents. Silanis' e-SignLive platform is used by banks, insurers and government agencies.
The acquisition dovetails with VASCO’s vision of delivering new solutions that are in high demand within its financial services customer base, accelerating its transition to a recurring revenue model, strengthening its revenue base in North America, and expanding its customer base outside of its core banking business.
Both VASCO and Silanis are focused on secure transactions that must meet strict regulatory and compliance requirements. VASCO has identified demand for digital transaction solutions among its customer base and, following the closing of the transaction, can immediately start selling Silanis solutions to its global banking customers. The banking segment is Silanis’ number one vertical.
“In Silanis, we have found a company with incredible technology and solutions that have emerging demand among our vast customer base,” said T. Kendall Hunt, chairman and CEO of VASCO. “Silanis’ offering is consistent with our focus on authentication and fraud prevention. We see the potential to accelerate growth in a rapidly expanding new market while still maintaining our commitment to our core offering. Given that Silanis focuses on generating recurring revenue through a Software-as-a-Service model, we expect that it will be a significant factor in helping VASCO grow its operating income, both on an absolute basis as well as a percentage of revenue.”
Craig Le Clair, principal analyst at Forrester Research, reports a 53% average annual growth in the use of e-signatures since 2012 with the number of transactions settled using e-signatures topping 210 million and likely to reach more than 700 million in 2017.
“A recent directive passed by the European Parliament and the Council of the European Union promises to solidify and promote e-signature adoption across the region,” Le Clair said. “Mobile transactions will push e-signature authentication to the device, with Europe leading the way in innovation.”
Silanis, based in Montreal, Canada, utilizes an SaaS and on-premise subscription model for its customers who are located primarily in North America. Silanis expects to report revenues, determined under Canadian Generally Accepted Accounting Principles, of approximately $16 million for the full-year 2015, an increase of approximately 30% over full-year 2014. Based on bookings of new business through the third quarter of 2015, which were up more than 200% over the comparable period in 2014, Silanis is projecting that its revenues for 2016, on a standalone basis, will increase more than 25% over 2015.