DocuSign, Inc. announced its acquisition of Israeli digital security company Algorithmic Research, Ltd. (ARX). The terms of the deal were not disclosed, but Israeli media sources estimate the acquisition price at $30-50 million.
Founded in 2003 by Tom Gonser, DocuSign is a privately-held venture-backed company that has raised over $230 million through 12 funding rounds. According to Crunchbase, DocuSign’s investors include Recruit Holdings, BBVA Ventures, Visa, Mitsui, MKI, NTT, EquityZen, SharesPost, Salesforce, Telstra, Cross Creek Advisors, Sands Capital, Sigma West, Kleiner Perkins, Accel Partners, Comcast Ventures, Sapphire Ventures, Google Ventures and others.
The acquisition builds on a three year business partnership between DocuSign and ARX, bringing together ARX’s best-in-class CoSign digital signature technology with the world’s leading Digital Transaction Management (DTM) platform, to empower customers to transact business with full trust and confidence anywhere in the world.
“ARX has been a great partner for DocuSign for many years,” said Keith Krach, DocuSign Chairman and CEO. “They have a high performance team, strong customer focus, world class technology, and deep domain expertise. We’re delighted to have ARX’s customers and partners join The DocuSign Global Trust Network.”
“DocuSign is the undisputed global standard for Digital Transaction Management,” said Gadi Aharoni, CEO, ARX. “ARX customers will benefit from the robust cloud-based workflow and transaction management capabilities of the DocuSign Digital Transaction Management (DTM) platform – complete with Bank Grade Security and Carrier Grade Availability – to empower them to transact anytime, anywhere, on any device. Securely.”
Dr. Aharoni has served as the CEO of ARX since 2001. He led the MBO of ARX from Cylink Corp (later SafeNet NASDAQ:SFNT) in 2001. He had previously spent three years holding various senior management positions at Cylink’s Santa Clara, CA headquarters. In 1996, Dr. Aharoni co-founded Orcast, which developed a conditional-access system for digital-television broadcasting. He previously held a number of engineering positions at companies in the UK and Israel. Dr. Aharoni holds a MEng degree in Computing from Imperial College of Science and Technology, UK, and a Ph.D. in Computer Science from the Hebrew University of Jerusalem, Israel.
ARX, with its CoSign line of products, offers important compliance certifications critical for customers in Europe, the Americas and Asia, including NIST’s FIPS 140-2 Level 3 and Common Criteria EAL4+ certifications. CoSign is used by millions of users globally to transact business in the most highly regulated industries, including life sciences, government and public sector, financial services, healthcare and engineering. The CoSign product line includes native integrations into a wide variety of systems including Microsoft Office, Office 365, SharePoint, Nintex, K2, OpenText, Oracle, Alfresco and more. ARX has more than 2,000 customers.
ARX is a leading global provider of digital signature solutions. Millions of people at large enterprises, SMBs, governments and cloud services around the world use the company’s flagship CoSign products on a daily basis to easily add secure digital signatures to documents in Word, Excel, PDF, SharePoint, OpenText, Oracle, Alfresco, Nintex, K2, and many other applications and file formats. By seamlessly integrating digital signatures into existing document-related workflows, applications and services across their organizations, CoSign customers quickly transform their slow and expensive signature-dependent processes into quick and efficient paper-free ones. They rapidly reach ROI through significant reductions in process times and paper-related costs, while ensuring trust, integrity, control and compliance across their business and IT environments.
San Francisco and Seattle-based DocuSign is the global standard for DTM. It helps more than 100,000 companies across nearly every industry and department make their digital transformation by putting an end to the paper chase. More than 50 million people in 188 countries turn to DocuSign to manage their most important transactions—digitally. DocuSign’s DTM platform supports legally compliant signature processes tailored to meet requirements globally with localization in 43 languages. Every day more than 50,000 new users join The DocuSign Global Trust Network to increase speed to results, reduce costs, enhance security and compliance, and delight clients with a secure digital experience.
Keith Krach became DocuSign’s chairman in January 2010 and its CEO in August 2011. Krach has a long history of technology leadership. He co-founded Ariba in 1996, serving as chairman and CEO. Krach is widely recognized as pioneering B2B Commerce and was recognized with the Technology Pioneer Award at the World Economic Forum in Davos. He was also named National Entrepreneur of the Year by Ernst & Young. Today, nearly $1 Trillion of commerce is transacted through the Ariba network.
Krach started his career at GM as the youngest-ever vice president. Krach then joined the founding team of Rasna Corporation, which was sold to Parametric Technologies. Rasna transformed the mechanical computer-aided engineering (CAE) industry and Krach was recognized as an early pioneer within the Robotics industry.
Krach earned his B.S. degree in Engineering at Purdue University and his MBA at Harvard. He is Chairman Emeritus of the Board of Trustees at Purdue University. Krach is also the former Chairman of the Board at Angie’s List, former International President of Sigma Chi Fraternity, and one of the early founders and board members at XOJet.