SEP's Metaforic sold to VC-backed Inside Secure for $11.6m

Ellie Pullen
09 April 2014

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Glasgow-based security software provider Metaforic, backed by Scottish Equity Partners (SEP) and Pentech Ventures, has been sold to VC-backed French fabless semiconductor company Inside Secure.

The sale was executed for a cash consideration of $11.6m, with the potential for an earn-out of up to $4.5m in cash in 2015, subject to business milestones reached this year.

Metaforic will be integrated into Inside Secure's mobile security division following the transaction.

Prior to its flotation on the NYSE Euronext Paris in February 2012, Inside Secure was backed by Gimv, Siparex, Alta Berkeley, Vertex Management, Sofinnova Partners, Granite Global Ventures, Qualcomm Ventures Europe, Nokia Growth Partners, EuroUS Ventures and BPI France (then FSI Régions).

The company raised more than €80m across six funding rounds spanning from January 2001 to May 2010, according to unquote" data.

Inside Secure currently has a market cap of €127m. Sofinnova owns a 13.81% stake in the business while Gimv holds 12.51%. BPI overall owns a shareholding of 14.26% in the company, comprising 7.13% held by BPI France Participations and the balance owned by Fonds Stratégique d'Investissements.

Previous investment
Metaforic first received funding in September 2008, securing $2m from Pentech via the firm's newly closed Pentech II fund. Pentech II was launched in November 2007 with a target of £25m and closed in September 2008 on £45m.

Scottish Enterprise provided additional funding alongside Pentech in the round.

The company's second round of funding took place in April 2011, with Pentech and Scottish Enterprise returning alongside new investor SEP, which led the $8m round.

Company
Founded in 2006, Metaforic is headquartered in Glasgow with a US office located in San Jose, California. The company provides security software such as anti-tamper technology and whitebox cryptography for mobile devices.

Metaforics are designed to allow software creators to protect their applications and data from theft, hacking and tampering as soon as a product is released.

People
Andrew McLennan is the CEO of Metaforic, while Rémy de Tonnac is the CEO of Inside Secure.