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Aladdin Knowledge Systems
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<h2 id="history">History</h2> <p>Aladdin Knowledge Systems was founded in 1985 by <a href="/facts/Yanki_Margalit/YVYfnoRo">Jacob (Yanki) Margalit</a>, when he was 23 years old; he was soon joined by his brother Danny Margalit, who took the responsibility for product development at the age of 18, while at the same time completing a Mathematics and Computer Science degree at <a href="/facts/Tel_Aviv_University/5MVPPor0">Tel Aviv University</a>. In its early years the company developed two product lines, an <a href="/facts/Artificial_intelligence/lJGauQwX">artificial intelligence</a> package (which was dropped early on) and a hardware product to prevent unauthorized software copying, similar to <a href="/facts/Digital_rights_management/4AF8JmDt">digital rights management</a> (DRM). Margalit raised just $10,000 as an initial capital for the company.<a class="footnote-ref" id="fnref:1" href="#fn:1"><sup>1</sup></a> </p><p>The digital rights management product became a success and by 1993 generated sales of $4,000,000. The same year that company had an <a href="/facts/Initial_public_offering/2NntDhrG">initial public offering</a> on <a href="/facts/NASDAQ/C6GlcQcB">NASDAQ</a> raising $7,900,000.<a class="footnote-ref" id="fnref:2" href="#fn:2"><sup>2</sup></a> In 2004 the company's shares were also listed on the <a href="/facts/Tel_Aviv_Stock_Exchange/PgfM57U5">Tel Aviv Stock Exchange</a>.<a class="footnote-ref" id="fnref:3" href="#fn:3"><sup>3</sup></a> By 2007 the company's annual revenues reached over $105 million. </p><p>In mid-2008, Vector Capital was attempting to purchase Aladdin. Vector initially offered $14.50 per share, but Aladdin's founder Margalit refused the offer arguing that the company was worth more. Aladdin's shareholders agreed on the merger in February 2009 at $11.50 per share, in cash. In March 2009, Vector Capital acquired Aladdin and officially merged it with SafeNet.<a class="footnote-ref" id="fnref:4" href="#fn:4"><sup>4</sup></a> </p> <h3>Corporate timeline</h3> <ul><li>1985 – Aladdin Knowledge Systems was established</li> <li>1993 – Aladdin held an <a href="/facts/Initial_public_offering/2NntDhrG">initial public offering</a></li> <li>1996 – Aladdin acquired the German company <i>FAST</i></li> <li>1998 – Aladdin patented <a href="/facts/USB/XcIKWLyg">USB</a> <a href="/facts/Smart_card/K7b9lowS">smart card</a>-based <a href="/facts/Authentication_token/0V55fErB">authentication tokens</a></li> <li>1998_Dec – Aladdin acquired the software protection business of <a href="/facts/Eliashim_(anti_virus)/TyQ3Hble">EliaShim</a></li> <li>1999 – Aladdin acquired the eSafe "content security" business of <a href="/facts/Eliashim_(anti_virus)/TyQ3Hble">EliaShim</a></li> <li>2000 – Aladdin acquired 10% of <i>Comsec</i></li> <li>2001 – Aladdin acquired the ESD assets of <i>Preview Systems</i></li> <li>2005 – Aladdin completed second offering – 2,000,000 shares with net proceeds of $39m</li> <li>2009 – Aladdin was acquired by Vector Capital.</li> <li>2010 – Aladdin was merged with Vector Capital's <a href="/facts/SafeNet/04U1X5UP">SafeNet</a>.<a class="footnote-ref" id="fnref:5" href="#fn:5"><sup>5</sup></a></li></ul> <h2 id="products">Products</h2> <h3>DRM</h3> <p>Aladdin's HASP product line is a DRM suite of protection and licensing software with 40% global market share, used by over 30,000 software publishers. It is used across many platforms (<a href="/facts/Microsoft_Windows/bwhAhuSL">Windows</a>, <a href="/facts/Linux/9FvCKSTq">Linux</a>, <a href="/facts/MacOS/Y93vVpTm">Mac</a>).<a class="footnote-ref" id="fnref:6" href="#fn:6"><sup>6</sup></a> </p><p>HASP, which stands for <i>Hardware Against Software Piracy</i>, was the company's first product and evolved into a complete digital rights management suite, that includes a software only option and a back office management application, in recent years also <a href="/facts/Software_as_a_service/LPyPQ5b7">software as a service</a> capability. </p> <h3>Internet security</h3> <p>In the late 1990s the company started diversifying and began offering <a href="/facts/Internet_security/LeTm8Wx4">Internet security</a> and <a href="/facts/Network_security/09f8YxwD">network security</a> products, offering two product lines: </p> <h4>Digital identity management</h4> <p>eToken, portable device for <a href="/facts/Two-factor_authentication/186gpx8R">two-factor authentication</a>, pasdigital <a href="/facts/Identity_management/D4Ukft0T">identity management</a>, mainly deployed as a <a href="/facts/USB/XcIKWLyg">USB</a> token. </p> <h4>Network security</h4> <p>eSafe a line of integrated <a href="/facts/Network_security/09f8YxwD">network security</a> and <a href="/facts/Content_filtering/bHoW65eY">content filtering</a> products, protecting networks against cracked and pirated Internet-borne software. </p> <h2 id="see-also">See also</h2> <ul><li><a href="/facts/Product_activation/b85LkpcW">Product activation</a></li> <li><a href="/facts/License_manager/m0kNjHtL">License manager</a></li> <li><a href="/facts/List_of_license_managers/m0kNjHtL">List of license managers</a></li> <li><a href="/facts/Floating_licensing/omPNTU71">Floating licensing</a></li> <li><a href="/facts/Silicon_Wadi/aNCEzSEn">Silicon Wadi</a></li></ul> <h2 id="external-links">External links</h2> <ul><li><a href="http://www.safenet-inc.com">SafeNet Inc. Data Protection & Software Licensing website</a></li> <li><a href="http://www.safenet-inc.com/products/data-protection/content-security-esafe/">Content Security – eSafe</a> <a href="https://web.archive.org/web/20111026025449/http://www.safenet-inc.com/products/data-protection/content-security-esafe/">Archived</a> 2011-10-26 at the <a href="/facts/Wayback_Machine/nmQ3a6JC">Wayback Machine</a></li> <li><a href="http://www.safenet-inc.com/products/data-protection/two-factor-authentication/etoken-pass/">eToken PASS – Aladdin Product</a> <a href="https://web.archive.org/web/20111015233847/http://www.safenet-inc.com/products/data-protection/two-factor-authentication/etoken-pass/">Archived</a> 2011-10-15 at the <a href="/facts/Wayback_Machine/nmQ3a6JC">Wayback Machine</a></li> <li><a href="http://www.aladdin.com">Aladdin Knowledge Systems website</a></li></ul> <h2 id="references">References</h2> <ol> <li id="fn:1"><p>Shohet, Dan (2008-09-15), "Aladdin's Yanki Margalit: It's not personal", Globes, archived from the original on 2011-07-13, retrieved 2009-11-16 <a href="https://web.archive.org/web/20110713071520/http://www.ivc-online.com/ivcWeeklyItem.asp?articleID=7672" target="_blank">https://web.archive.org/web/20110713071520/http://www.ivc-online.com/ivcWeeklyItem.asp?articleID=7672</a> <a href="#fnref:1" class="footnote-back-ref">↩</a></p></li> <li id="fn:2"><p>"Aladdin completes flotation. (Aladdin Knowledge Systems finishes initial public offering on NASDAQ)", Israel Business Today Article Date: October 29, 1993, archived from the original on 2012-11-05 <a href="https://web.archive.org/web/20121105205648/http://www.highbeam.com/doc/1G1-14668135.html" target="_blank">https://web.archive.org/web/20121105205648/http://www.highbeam.com/doc/1G1-14668135.html</a> <a href="#fnref:2" class="footnote-back-ref">↩</a></p></li> <li id="fn:3"><p>"Aladdin Knowledge Systems to Dual-List on Tel Aviv Stock Exchange.", PR Newswire, July 22, 2004[dead link] <a href="http://www.highbeam.com/doc/1G1-132339650.html" target="_blank">http://www.highbeam.com/doc/1G1-132339650.html</a> <a href="#fnref:3" class="footnote-back-ref">↩</a></p></li> <li id="fn:4"><p>Shuster, Shmuel (March 2009), Vector completes Aladdin takeover. <a href="http://www.haaretz.com/hasen/spages/1073750.html" target="_blank">http://www.haaretz.com/hasen/spages/1073750.html</a> <a href="#fnref:4" class="footnote-back-ref">↩</a></p></li> <li id="fn:5"><p>Company Profile for Aladdin Knowledge Systems Ltd (ALDN), retrieved 2008-10-20 <a href="http://www.zenobank.com/index.php?symbol=ALDN&page=quotesearch" target="_blank">http://www.zenobank.com/index.php?symbol=ALDN&page=quotesearch</a> <a href="#fnref:5" class="footnote-back-ref">↩</a></p></li> <li id="fn:6"><p>Miller, Zack (March 12, 2008), "March Stock of the Month: Aladdin Knowledge Systems (ALDN)", Israel Opportunity Investor, archived from the original on January 7, 2009, retrieved November 16, 2009 <a href="https://web.archive.org/web/20090107042911/http://israelnewsletter.com/2008/03/12/march-stock-of-the-month-aladdin-knowledge-systems-aldn/" target="_blank">https://web.archive.org/web/20090107042911/http://israelnewsletter.com/2008/03/12/march-stock-of-the-month-aladdin-knowledge-systems-aldn/</a> <a href="#fnref:6" class="footnote-back-ref">↩</a></p></li> </ol>