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Massachusetts Firm to Acquire Software Maker RSA Data Security Inc.(Originated from The Boston Globe)

Knight Ridder/Tribune Business News, April, 1996 by Bray, Hiawatha

Apr. 16--A little-known computer security firm in Cambridge is acquiring the best-known maker of data encryption software. Security Dynamics Technologies Inc. will acquire RSA Data Security Inc. in a stock transaction worth about $200 million.

Security Dynamics' stock soared 26 percent on the news.

RSA, based in Redwood City, Calif., was founded in 1982 by three former MIT professors. Today, RSA is the dominant producer of encryption software, which scrambles computer data to prevent unauthorized people from reading it. Rather than sell stand-alone products, RSA sells licensing rights to other companies, which embed RSA software into their products. RSA encryption is built into many leading computer programs, including Microsoft Windows, the Netscape...

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