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Sunday, September 07, 2008

Tumbleweed Acquired

By Adrian Lane

Sopra Group, through its Axway subsidiary, has acquired Tumbleweed Communications for $143 million. The press release is here

With Tumbleweed’s offerings for email security, secure file transport, and certificate validation, there were just not enough tools in that chest to build a compelling story- either for messaging security or secure transaction processing. And it provides just one more example of why Rothman is right on target. Given that Tumbleweed’s stock price has been flat for the entirety of this decade, this is probably both a welcome change of scenery from the stockholders’ perspective, and a sign of new vision on how best to utilize these technology elements. There are lots of fine email/content security products out there having a very difficult time of expanding their revenue and market share. Without some of the other pieces that most of their competitors have, I am frankly impressed that Tumbleweed has made it this far. Dropping this product line into the Axway suite makes sense as it will add value to most of their solutions, from retail to healthcare, so this looks like a positive outcome.

–Adrian Lane