Internet security specialist Baltimore Technologies yesterday announced plans to sell its US-based managed services business for $1.75 million (€1.54 million) and signalled it would continue to dispose of its non-core interests.
The Irish-based firm said it had agreed to sell the division, which provides digital authentication certificates for use in online transactions, to Betrusted, a leading operator in that sector. Baltimore is also likely to sell a similar division, Omniroot, and dispose of its 11 per cent stake in British email security provider Clearswift.
In a statement, Baltimore pointed out that, when efforts to sell the whole company collapsed on July 10th, it announced that it would continue with negotiations to sell managed services related businesses, and focus on its core financial and government markets.
A spokesman yesterday confirmed that negotiations to dispose of non-core operations were continuing. He confirmed that Baltimore regarded both Omniroot and its Clearswift stake, acquired last year, as non-core. He added that the company intended to sell them.
The sale of its US managed services arm, which is based in Needham Heights, Massachusetts, will be completed in August. Baltimore yesterday said it intended to use the cash for general corporate purposes.
Its statement said that, based on unaudited management information for the year to December 31st, 2002, the business generated sales of $1.5 million. It lost $1.96 million before interest and tax.
Baltimore chief executive Mr Bijan Khezri said the company regarded the managed service business as a product distribution channel "rather than an end in itself".
Betrusted already uses Baltimore products to support its services.
