- Covata, a company specialising in digital security management, sold off an arm of its business today – SafeShare
- SafeShare is a user-friendly software service for encrypting data for file sharing
- The software was sold to company Cybr5 in a share sale from Covata subsidiary, Cocoon
- Encryption and preservation of data is valuable to many internet users wishing to retain the liberties similar to early days of decentralised internet use
Digital security manager Covata completed the sale of its data encryption business SafeShare today.
The company sold the smaller arm of business by selling shares in its subsidiary Cocoon Holdings. The sale was made to company Cybr5 and Covata has already received the cash payment of the sale.
SafeShare is a user-friendly service that encrypts the data of information and files when sent to a designated person.
“The completion of the sale of SafeShare now positions Covata closer to achieving its transformation to a Content Services company,” Covata CEO Ted Pretty said.
“Three steps remain – the successfully completion of a raise of $13.7m under our Prospectus to fund the dataglobal acquisition, a successful outcome to the EGM to be held on August 7th and then readmission by the ASX shortly thereafter,”
Cybr5 was founded by its now-CEO, Trent Telford. Trent expressed today in Covata’s ASX media release the importance of data encryption.
“We are extremely excited to be able to assume ownership and control of the SafeShare business and underlying technology at a time when data security and compliance for both enterprise and government is seen as a critical issue,” he said.
“There are enormous opportunities ahead in areas such as more intensive cloud deployment, geolocation services to support data sovereignty and blockchain architecture to support data immutability,”
Data immutability is the practice to retain the same functions and elements of a piece of the internet after it has been created, making it virtually impossible to change.
For example, the website you created is hosted on your own terms and services, impossible for a government or corporation to destroy.
This practice is seen as important to many internet users seeking ways to preserve the power in their own hands, rather than the internet providers.
“We are taking the technology into data privacy and compliance heavy segments where borders, privacy and risk mitigation are the purchasing drivers – and doing so as a SaaS and Cloud service,” Trent continued.
“We are particularly delighted that the existing development and support team will remain with the business, and that we are backed by Australian investors as we grow the Australian Government business, rapidly expand the US ITAR market and grow the UK and Europe base,”
Shares in Covata are untouched today, sitting still at 1.5 cents a piece – identical to yesterday’s closing price. The company’s market cap is currently valued at $11.74 million.