Baltimore Technologies has bought a 72.5 per cent stake in its Japanese sales agency, NSJ Corp, for 2.67 billion yen (£20 million). As part of the agreement NSJ will also pay Baltimore Technologies 2.4 billion yen to extend its exclusive licence to sell Baltimore products for the next 12 years.

The acquisition of NSJ, which specialises in information security solutions for major organisations, banks and government bodies, enhances Baltimore's presence in the Japanese electronic security market. "We are now in a strong position to further develop our customer, partner and shareholder base in this exciting market," said Mr Fran Rooney, chief executive, Baltimore Technologies. "Japan is rapidly adopting e-business and e-commerce and we believe that this deal is good value and is very well-timed to capitalise on the Japanese Internet and mobile commerce growth opportunities." The announcement was made in Tokyo at a ceremony attended by the Minister of State for the Environment, Mr Bobby Molloy, the Irish Ambassador to Japan, Mr Declan O'Donovan, and Mr Bijan Kehzri, a member of the board of Baltimore Technologies. Baltimore, the leading performer in the Irish software sector, came to Japan in 1997 and was introduced to NSJ by the Irish Enterprise Board. NSJ, which employs more than 50 people in its offices in Tokyo, is currently owned by its management team and a group of Japanese investors and has net assets valued at one billion yen.

Mr Molloy said: "Baltimore's telepathy technology is one solution aimed at the world of mobile commerce and it is appropriate that Baltimore strengthen its position here, through the acquisition of NSJ, in preparation for the worldwide implementation of third-generation phone systems." Since its appointment as the sole Baltimore partner for Japan in June 1998, NSJ has marketed and sold Baltimore's public key infrastructure (PKI) systems, cryptographic toolkits and security solutions. Its customers include Sony, Fuji, NEC and NTT Data; partners include Hitachi Software Engineering, Tomen, Japan Unisys, Custom Technology, Mu Inc, Advanced System Consulting, Galaxy and NTT Software.

The net cash outflow from Baltimore will be 267 million yen, which will be funded from its existing cash resources.

Baltimore develops and markets security products and services worldwide to enable companies to develop trusted, secure systems for e-business, the Internet and mobile commerce. Baltimore employs more than 450 people worldwide and operates from over 20 cities. Editorial comment, page 15;