Internet security firm Baltimore Technologies today confirmed it had reached a deal to sell its Content Technologies system for £20.5 million sterling to Clearswift Corporation.
The deal with Clearswift will give Baltimore an 11 per cent stake in the enlarged Clearswift group, enabling it to participate in any growth in Clearswift's businesses.
Baltimore chief executive Mr Bijan Khezri said: "Whilst the disposal of Content Technologies is a significant step towards strengthening our company for success in its core business, our efforts to refocus the business, enhance the productivity of our operations and maximise its potential, are far from being complete". Baltimore bought Content for £690 million in September 2000. Analysts had expected the e-mail screening system to fetch between £20 million and £50 million.
Clearswift is backed by Amadeus Capital Partners and provides policy-based e-mail security software.
Baltimore will focus on developing security technologies and solutions. It said investment in these operations is delaying its progression to becoming EBITDA (earnings before interest, tax, depreciation and amortisation) positive for six to nine months from the previous target of the second quarter of this year.
Baltimore said revenues for the three-month period to December 31st, 2001, was in line with the previous two quarters and predicted market conditions in the first quarter of 2002 will be similar to the previous nine months while volatility in the market place persists.