FAQ for PGP Corporation Acquisition of TC TrustCenter and ChosenSecurity

Transaction Details

Why did PGP Corporation acquire TC TrustCenter and ChosenSecurity?
PGP Corporation acquired TC TrustCenter and ChosenSecurity for their proven platform for issuing trusted identities used to enable secure communications and transactions. With this announcement PGP is adding to its core competency in data protection and now offering managed trusted identities for encryption, authentication, and secure collaboration.

This acquisition is the next step in PGP Corporation’s mission to be the preeminent supplier of trusted data protection products and services for on premise and cloud computing. This is a strategic step from an encryption applications and platform provider, to provider of Trusted Data Protection solutions.

The TC TrustCenter platform provides the foundation that will accelerate PGP Corporation’s plans to deliver trusted data protection to applications built by other vendors using X.509 certificates. TC TrustCenter brings a wealth of deep expertise in delivering trust services built on X.509 and PKI technologies - expertise that will be crucial to building the next generation of PGP solutions. This acquisition expands and enhances PGP Corporation’s ability to service its existing customers, and also provides PGP Corporation with access to new opportunities and customers.

What are the terms of the acquisition?
Terms of the acquisition are not being disclosed.

How is the combined company structured?
TC TrustCenter and ChosenSecurity will operate as a business division within PGP Corporation. PGP Corporation has appointed Rajiv Dholakia, the current PGP VP of Corporate Development and Strategy, as the General Manager of the newly-formed business unit.

Products / Technology

What products does TC TrustCenter provide?
TC TrustCenter’s primary product,TC Enterprise ID, is a web based, on-demand service that enables customers to generate trusted identities. These trusted identies can be used for strong authentication, secure e-mail, digital signatures, and data encryption, and support compliance with privacy and other regulations. Example applications include securing SSL connections between a web-browser and a web site, and providing verifiable proof that a document or application is from a known and trusted publisher.

As an accredited certificate authority under the German Digital Signatures Act, Identrust, SAFE and SISAC, TC TrustCenter also issues digital certificates that comply with national and international guidelines such as the European Electronic Signatures Directive. These certificates can be used to create legally binding digital signatures on electronic documents and transactions.

Will PGP Corporation continue to offer and support TC TrustCenter products?
Yes. TC TrustCenter and ChosenSecurity, operating as a division of PGP Corporation, will continue to develop, maintain, sell, and support all of their existing products.

Will any TC TrustCenter or PGP® products be discontinued as a result of the acquisition?
No. Each company provides a complementary set of products and services. The goal of this acquisition is to unite these capabilities to deliver new solutions that combine the unique attributes of PGP Corporation’s data protection solutions with TC TrustCenter’s trusted identity service-based delivery model.

Does PGP Corporation intend to provide an integrated PGP / TC TrustCenter product offering?
PGP® Desktop Email: PGP Desktop Email can use TC TrustCenter certificates to digitally sign emails, as well as verify digitally signatures on S/MIME emails signed by a TC TrustCenter certificate.

PGP Universal™ Server: The PGP Universal Server’s web-based management console can use TC TrustCenter SSL certificates to secure communications between the web browser and the management console.

PGP Universal™ Gateway Email: The PGP Universal Gateway Email’s mail proxy can use TC TrustCenter SSL certificates to secure communications between itself and another mail server.

In the future, PGP Corporation expects to integrate the ability to leverage the TC TrustCenter platform to enable PGP® products to issue trusted identities.

Will this acquisition impact the long-term support of TC TrustCenter products?
No. TC TrustCenter will continue to develop, maintain, sell, and support TC TrustCenter products as a division of PGP Corporation. Customers can expect to continue to receive the same superior quality of customer service and support from TC TrustCenter that they have received in the past.

Where can I find information on TC TrustCenter products?
Product information is available at http://www.tctrustcenter.de/ (Germany), http://www.tctrustcenter.com/ (UK), and http://www.chosensecurity.com (US).

Strategy & Integration

How does TC TrustCenter’s technology fit into PGP Corporation's broader security vision and strategy?
PGP Corporation believes that as organizations deploy more applications that use encryption to protect their data, managing those solutions will become increasingly important to customers. The inability to properly manage policy across an organization will risk disruption to the business, exposure of confidential data, and regulatory penalties for the company.

TC TrustCenter’s technology is built on widely deployed standards, and already enables many existing data protection and communication security products. By integrating PGP® products with TC TrustCenter’s platform for delivering trusted identities, PGP Corporation will extend its ability to manage data protection beyond its own applications.

Where can I find more information on the acquisition?
This FAQ, along with the press release and other information on the acquisition are available from http://www.pgp.com/pgp-trustcenter/.

Customer & Partner Support

How does this acquisition affect TC TrustCenter and ChosenSecurity customers?
This acquisition should have no impact on customers of TC TrustCenter and ChosenSecurity. Customers will continue to receive sales and customer support from TC TrustCenter and ChosenSecurity, with no changes to service or support.

What is the process for TC TrustCenter and ChosenSecurity customers to obtain support for their products?
Customers will continue to obtain support directly from TC TrustCenter and ChosenSecurity. Customers of TC TrustCenter can reach support via the “Service Center” link on http://www.tctrustcenter.com. Customers of ChosenSecurity can reach support via the “Customer Support” link on http://www.chosensecurity.com.

Will support change now that TC TrustCenter and ChosenSecurity have become a part of PGP Corporation?
No. TC TrustCenter and ChosenSecurity customers will continue to receive their support from TC TrustCenter and ChosenSecurity, without any disruption in service.

How do TC TrustCenter and ChosenSecurity customers contact their sales account manager?
Customers of TC TrustCenter can contact their sales account manager using the contact form at www.tctrustcenter.de/en/kontakt.html or by phoning +49 40 80 80 26 424.

Similarly, customers of ChosenSecurity can contact their sales account manager using the contact form at www.chosensecurity.com/contact/ or by phoning 1-866-468-2180.

How will customers know if there is a change to their sales account team?
Although there are no changes to the sales account team planned at this time, customers will be notified of any future changes directly by telephone.

What impact will this acquisition have on PGP Corporation channel partners? Will TC TrustCenter and ChosenSecurity products be made available via PGP Corporation channel partners?
This acquisition will not affect the current PGP Corporation channel partners. TC TrustCenter and ChosenSecurity will be run as a division of PGP Corporation, and will continue to sell to customers through its existing sales organization and channel partners. PGP Corporation will evaluate when and how the existing PGP Corporation channel partners may be able to resell the TC TrustCenter product line over the coming months.

Does TC TrustCenter or ChosenSecurity have channel partners? Are they complementary to PGP Corporation's channel strategy?
Yes, TC TrustCenter and ChosenSecurity have a limited set of partners that leverage TC TrustCenter certificates to enable security applications. This is a very limited set of partners as TC TrustCenter and ChosenSecurity have not yet implemented a channel program.

PGP Corporation will be evaluating the specific requirements of ChosenSecurity and TC TrustCenter to determine how to integrate the partners with PGP Corporation’s channel strategy. PGP Corporation will also evaluate when and how the existing PGP Corporation channel partners may be able to resell the TC TrustCenter product line.

Company Operations

Will any facilities be closed as a result of the acquisition?
No. ChosenSecurity will maintain its sales and marketing office in Boston, USA and TC TrustCenter will maintain its existing development, support and network operation site in Hamburg, Germany.

Will there be a reduction in workforce as a result of this acquisition?
No. The acquisition was undertaken to add to PGP Corporation’s business, not to replace any aspects of either business.

What is the total number of TC TrustCenter and ChosenSecurity employees?
TC TrustCenter and ChosenSecurity employs a staff of approximately 50 individuals responsible for development, network operations, sales, and marketing functions.

Will there be changes to the PGP Corporation, ChosenSecurity, or TC TrustCenter leadership teams?
Yes. Phil Dunkelberger, president and CEO of PGP Corporation, has appointed Rajiv Dholakia, currently the VP of Corporate Development and Strategy at PGP Corporation, as General Manager of this new business unit within PGP Corporation resulting from the acquisition.

Senior members of the TC TrustCenter and ChosenSecurity teams will continue in their roles, including: Sabine Kochskämper (Managing Director, TC TrustCenter), Artur Heil (Executive Director Marketing & Sales, TC TrustCenter), Dean Coclin (VP Business Development, ChosenSecurity), and Jon Adams (CTO, ChosenSecurity).

In addition, the current ChosenSecurity CEO and CFO will transition out of the organization upon completion of a transition period.

Where will the ChosenSecurity operations be located?
TC TrustCenter will continue to operate its development and network operations center in Hamburg, Germany, and ChosenSecurity will continue to operate its sales and marketing office in Boston, USA.