HP is to buy SelectAccess, the Web-based single sign-on business of distressed computer security firm Baltimore Technologies, for £8.3 million in cash.
Dublin-based Baltimore is currently mulling over several takeover bids and offers for parts of the company under a controlled sale process announced in May.
Bijan Khezri, Baltimore chief executive officer comments: "This transaction represents an exceptional opportunity for our shareholders and is a key step towards maximising shareholder value."
Negotiations for the sale of other parts of the business remain ongoing says Khezri: "We remain committed to achieving the best possible outcome for all our stakeholders regarding the remaining parts of our business."
He says the company intends to use the cash proceeds of the SelectAccess disposal for general corporate purposes. The deal is expected to go through by the end of August 2003.
SelectAccess is designed to reduce online administration costs and complexity by providing a unified approach to defining authorisation policies and securely managing access to Web-based resources.
Based on unaudited management information for the twelve-month period ended 31 December 2002, the SelectAccess business generated revenues of £0.7 million and a loss before interest and tax of £2.1 million. As at 31 December 2002, the net liabilities of the SelectAccess business were £3.8 million.